Bitcoin has been slowing down recently since many investors are holding to its current value. For Binance founder Changpeng Zhao, the world's largest cryptocurrency could sit below $69,000 in the next couple of years.
The CEO of the popular crypto exchange said that at one point, some BTC investors four years ago might have been "very happy" with the $20,000 trading value of this digital coin.
Bitcoin Drops Below $69,000
In an interview with The Guardian on Thursday, June 23, Zhao said that it would take some time before Bitcoin recovers from the bearish trend.
After reaching $20,000 over the weekend, many long-term holders think it's time to focus on the other assets that will yield considerable gains.
The Binance founder said the BTC could even take months or years before returning to the $68,000 mark. Indeed, the fate of this crypto asset is uncertain since Zhao believes that "no one can predict the future" of Bitcoin.
"20k we think is very low today. But you know, in 2018, 2019, if you told people bitcoin will be 20k in 2022, they would be very happy. In 2018/19, bitcoin was $3,000, $6,000," Zhao continued.
Another all-time low value was recorded on Wednesday, June 22. At the time, Bitcoin was sitting at only $20,491 at its trading price. The last time that it reached this record was back in late 2020.
Although the cryptocurrency market is highly unstable, Zhao said that price fluctuations are just normal in the industry. On the brighter side, he said that there's a growth showing in the sector if people will just look at its current peak.
Speaking of Binance, the platform remains banned in the United Kingdom by the country's financial watchdog. According to the authorities, the crypto exchange was incapable of "being effectively supervised."
Declining Market Performance
Amid the left-and-right downfall of several crypto assets, many lending firms have been adjusting their operations like what Celsius Network did last week.
According to Tech Times, the crypto lending company had stopped all withdrawals and transfers because of the "extreme market conditions."
During that period, the platform's CEL met an untimely 60% drop because of the continuous market pressure. It even reached the point when it hit 19 cents.
Furthermore, the recent downward trend in the crypto market is associated with other elements. As such, the failure of the Terra stable coin has alarmed many investors who staked on this asset.
Many users stop investing for a while. Others withdraw their assets as a result.
Related Article : Bitcoin Plunge Triggers More FUD in China, Claims Crypto is 'Worthless'
What to Consider Before Purchasing a Cryptocurrency
For those people who are just getting started with crypto investments, be mindful that they are highly-volatile assets. You should consider a few things before buying them.
According to Coindesk, you first need to evaluate an asset by doing the following steps.
- Look for the project's website if it's legit, updated, and informative.
- Read the crypto white paper.
- Look for the social media pages of the cryptos that you want to invest in.
- Research more about the team members behind the cryptocurrency and their partnerships.
- Check the asset's market metrics.
- Take note of the cryptocurrency's price history.
Read Also: : Blockchains are Decentralized, but DARPA's Study Thinks it is Vulnerable to Centralization
This article is owned by Tech Times
Written by Joseph Henry
