Zhao’s statements raise a lot of expectation among traders and analysts, who believe that the higher prices are evidence that there is still faith in the cryptocurrency market
Di Matteo, an expert in Bitcoin and the digital currency ecosystem, has been reporting the trading volume of Binance and its effect on investors’ confidence since January 2019.
The CEO of Binance, Changpeng Zhao, spoke recently about the increase in the volume of transactions registered by exchange, indicating that in his opinion the digital currency ecosystem is recovering as a result of the recent increase in prices.
In an interview on CNBC, Zhao said that what is happening now in the markets provides evidence that there is still a lot of confidence in this industry, adding:
“Basically, the results show that the fact that prices rise so quickly is evidence that many people are waiting to invest. The fast increase in the value of Bitcoin indicates that people keep money for that purpose because they still have a lot of confidence in this industry.”
Zhao’s statements reinforce the faith of many enthusiasts of the digital currency ecosystem, as they see the rebound registered in the prices of the main cryptocurrencies as something positive.
Very High Commercial Volume
In addition to supporting what could be the beginning of a bullish market, Zhao said that Binance currently has very high trading volumes:
“There will certainly be more deposits in the coming days, as well as an increase in the volume of transactions and the number of commercial orders. Currently, there are many more operations than were registered in January 2018.”
Zhao considers that this is very positive and says that, in order to achieve new highs, each cycle requires a much larger investment than was registered in the previous rebound. If at some point in history Bitcoin were to exceed $ 200,000, the market would need to register a very high volume of commercial orders and have a lot of liquidity. Therefore, the CEO believes that, at this time, the public is laying the groundwork for something like this to happen.
When asked if this increase in the volume of operations came as a result of the rise in prices, Zhao said:
“For one or two months we have seen an increasing number of people registered on the platform but, undoubtedly, the highest volume of operations corresponds to this increase in prices.”
Faith in the Markets
Analyzing the situation in retrospect, the CEO of Binance said that the demand registered in February and March 2019 was much adjusted to the prices reflected in the markets, and all these indicators gradually increased during these months until they gained a greater rise at the beginning of April.
To conclude, Zhao said that “all the indicators managed by Binance are rising at this time”, which are very good pieces of news for analysts and investors in the digital currency markets, who think that Bitcoin and cryptocurrencies are getting a second wind in order to return to a cycle of financial bonanza.
By Willmen Blanco