In a recent interaction on Twitter Spaces, Changpeng Zhao (CZ), the CEO of Binance, the world’s largest crypto platform made revelations about their anticipation of rising trading volumes in the crypto market. Certain trends, CZ states, indicate a heightened surge in trading activity over the next six to 18 months.
Interestingly, the trading volumes have seen a hike since FTX’s collapse last year, a distinct event that indicated the bottom of the bear market for Bitcoin in 2022. CZ noted that the increasing crypto investments and trading levels could be attributed to the renewed efforts of respected asset managers to list a spot Bitcoin exchange-traded fund (ETF) in the US.
Prominent firms that have joined this race include BlackRock, known as the world’s most significant asset manager, along with Fidelity, WisdomTree, VanEck, and Invesco. Each firm holds the ambition to be the pioneer in introducing an ETF backed by spot Bitcoin instead of Bitcoin futures.
A consequential driver in this rise of sentiment and trading volume seems to be the anticipated Bitcoin halving, predicted to catapult Bitcoin to $50,000 and beyond. The next halving, expected to happen in April 2024, will see a drop in the reward for mining a new block on the blockchain from 6.25 BTC to 3.125 BTC.
CZ, during the AMA, when asked if the stated factors pushed his bullishness, replied, “I’m always bullish.” A sentiment he remarked that was persistently held, irrespective of whether the crypto market were in a bull or bear state. However, CZ was careful to add a note of much-needed realism. He emphasized that “no one can predict the future.” In a world as fluctuating as crypto markets, historical patterns don’t guarantee future outcomes. “Fundamentally, I don’t think anybody knows how the market is going to turn out,” CZ concluded.
To sum up, while Binance fortifies itself for possibly incoming surges in trading volumes, and companies race for Bitcoin ETFs, the upcoming halving adds another layer to the ever-evolving crypto market. For now, the only certainty in this market, as CZ rightly pointed out, is its unpredictability.
Source: Cryptonews
