Zhao recommended regulating the crypto industry rather than fighting it, pointing out that cryptocurrency adoption is inevitable. The CEO of Binance expects countries without a currency of their own to add Bitcoin to their reserves.
Changpeng Zhao recently said that regulating cryptocurrencies is a better option as their adoption grows.
During a meeting in Greece, the Binance CEO recommended regulating the crypto industry instead of fighting it. He noted that most governments worldwide understand that the adoption of crypto assets is inevitable.
The Chinese-Canadian businessman has compared the FTX collapse to the financial crisis in 2008. Although he warned of potential cascading effects, he expects the crypto industry to recover.
Zhao considers it necessary to restore confidence in the crypto industry, for which he has allocated millions of US dollars.
Changpeng Zhao Recommends Not Fighting Cryptocurrencies but Regulating Them
Zhao recommended that world governments regulate the industry rather than fight it since adoption will happen anyway.
Following the crash of several platforms, cryptocurrency regulation has been a focus of attention. The recent collapse of FTX caused its clients to withdraw USD 6 billion in only three days.
According to Reuters, the collapse of the FTX cryptocurrency exchange has caused losses of billions of US dollars. Besides, the effects of that event have spread to other platforms like Liquid, BlockFi, Genesis, and Gemini over the last two weeks.
However, the CEO of Binance expressed that he expected the crypto industry to recover from that dramatic fall. He commented that the market looked healthier after the debacles of the last two months. In addition, he pointed out that what happened to FTX does not imply that the other businesses in the sector are bad.
Zhao Expects More Countries to Add Bitcoin to Their Reserves
In November 2021, El Salvador became the first nation to adopt Bitcoin (BTC) as legal tender alongside the US dollar.
Changpeng Zhao said that he expected countries without their own currency to start adding cryptocurrencies like Bitcoin to their reserves.
Finally, the businessman predicted that the situation would improve next year, as he believes the industry is healthier.
The Current Situation of Bitcoin in the Crypto Market
Bitcoin is trading at around USD 16,220 and has accumulated a 2.1% loss over the last 24 hours. While its daily trading volume is above USD 19.04 billion, its market capitalization is about USD 311.72 billion, according to CoinGecko.
After a rejection below the resistance level of USD 16,600, Bitcoin trades to the downside. Its price formed a descending triangle pattern for 4 hours, which usually drives sales.
The price of Bitcoin in the market is going from around USD 16,220 toward an immediate support level of USD 16,000. That indicates its next target is USD 15,650, extended by a double bottom support level.
Prominent technical indicators like the RSI and MACD are in a sell zone, suggesting significant pressure. The 50-day MA extends resistance at USD 16,450, indicating that the bearish trend might continue.
By Alexander Salazar
