The CEO of Binance, Changpeng Zhaocommented on the volatility of Bitcoin (BTC), It suggests that the largest cryptocurrency by market capitalization is likely to be less volatile than the stock prices of companies of similar size by market capitalization like Apple and Tesla.
Woobull data shows that Bitcoin’s 60-day volatility has been steadily decreasing since early 2021. However, figures from the investment research portal AlphaQuery show that Tesla and Apple share prices still have significantly lower 60-day volatilities over the same period.
In one interview with Bloomberg TV on Monday, Binance’s leader argued that the volatility of the cryptocurrency is no different from the stock market situationand added: “Volatility is everywhere […] It’s not just for cryptocurrencies “.
“There are always large numbers of herd-minded people than the people who actually do serious research.”@cz_binance, Founder of the world’s largest cryptocurrency exchange, Binance, discusses the volatility of #cryptocurrency Markets on @BloombergTV pic.twitter.com/UAT4Kpy1tu
to???? Bloomberg (@business) May 3, 2021
For Zhao seek the returnwho are often not as committed to cryptocurrency projects as real believers, They are often to blame for unsettled price movements due to their large numbers.
“There are always more people who have a herd mentality than those who actually do serious research.”
“Whenever there is negative news, you [los seguidores en manada] They flee when there is positive news, they try to hurry and thus cause more volatility. “Zhao explained.
The executive’s characterization of crypto-believers as “die-hard fans who understand and truly love the project” is in line with his earlier comments on his personal approach to the industry as a whole.
Already in April Zhao announced that he has almost 100% of his net worth in cryptocurrencies.
The cryptocurrency market saw significant growth on Monday. Total market capitalization is up more than 4.5% in the past 24 hours.
The rise of Ether (ETH), which exceeded the $ 3,000 mark for the first time in history, was the highlight of the day, especially among the top 10 tokens by market capitalization.
Bitcoin is expected to test the $ 60,000 mark for the first time since mid-April, which preceded a small correction below $ 50,000 on April 24th.