It Could Take Years For Bitcoin To Hit $69,000, Says Binance Boss OCN News

Bitcoin

Since peaking at $69,000 in November, Bitcoin has fallen almost 70% (Photo: Reuters)

Bitcoin could stay below its high of $69,000 for the next two years according to the head of the world’s largest cryptocurrency exchange.

Changpeng Zhao, founder and CEO of Binance, told the Guardian that it could take “a few months or a few years” for the crypto market to recover.

This month, the market value of cryptocurrencies fell below $1 trillion for the first time since January 2021.

Since peaking at $69,000 in November, Bitcoin has fallen almost 70%. The crash of the most popular cryptocurrency wiped out the earnings of many long-term bitcoin holders.

Zhao noted that four years ago people would have been happy with Bitcoin’s current value of $20,000. The digital currency previously fluctuated between $13,000 and $6,000 in 2018.

Zhai Changpeng

Zhao Changpeng, founder and CEO of Binance, said Binance is “still hiring” (Photo: Reuters)

“I think given this price drop, from the all-time high of 68,000 to 20,000 now, it will probably take some time to come back. It will probably take a few months or a few years,” Zhao told the Guardian, adding that “no one can predict the future”.

‘If you look down [of bitcoin], right now it’s higher than the last peak. So whether it’s normal or not, I think the industry is still growing, price fluctuations are normal,”

On Thursday, Bitcoin was trading at $21,058 according to CoinMarketCap.

While there is no specific reason for the crypto crash, experts have suggested that the broader global climate is to blame, rather than anything to do with the currency itself. .

In addition to the cost of living crisis, inflation has soared in recent months – hitting a 40-year high in the UK in May – and it’s not just the UK that has experienced this , with US inflation also rising to around 8.6%, according to Marketwatch.

(FILES) This file photo taken in London on May 8, 2022 shows gold-plated souvenir cryptocurrency coins Tether (USDT), Bitcoin and Etherium laid out next to a screen displaying a trading chart.  (Photo by Justin TALLIS/AFP) (Photo by JUSTIN TALLIS/AFP via Getty Images)

Bitcoin could stay below its all-time high of $69,000 for the next two years according to the head of the world’s largest cryptocurrency exchange (Picture: AFP)

All this means that large investors take on less financial risk.

Added to this is the failure of the Terra Luna cryptocurrency, which wiped out 98% of its value overnight. Following this, leading cryptocurrency lending company Celsius Network decided to freeze withdrawals.

Since last June, Binance has been banned from undertaking any regulated activity in the UK by the Financial Conduct Authority because the business was “not capable of being effectively supervised”.

While other crypto giants like Coinbase cut 1,100 jobs this month, citing a “crypto winter,” Zhao said Binance was “still hiring.”

MORE: Cryptocurrency crash: What to do if you have an investment in Bitcoin

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