It’s been revealed that the CEO of Binance Changpeng Zhao is addressing the connection between the crypto market and stocks. Check out the latest reports below.
Binance CEO addresses crypto and stocks
Binance CEO Changpeng Zhao said that the limited supply of crypto, particularly large-cap assets like Bitcoin (BTC), Ethereum (ETH), and Binance Coin (BNB) could soon break from their correlation with the stock market.
In a new interview on CNBC, Zhao says that unlike fiat, the amount of crypto that can go into circulation is limited.
“I think like we’re one year in from the previous all-time high. The inflation, the interest rate, the adjustments, etc., those all affect the markets, but those are short-term.”
He continued and said the following:
“I think longer-term, given how much money was printed over COVID the last couple years, and the amount of quantitative easing that was done, inflation would definitely kick in just by simple logic.”
Zhao also stated this:
“Cryptocurrencies, the big ones – Bitcoin, BNB coin, Ethereum, they’re limited supply, so their supply didn’t increase. The number of people getting into this industry and the utility, the number of people who need to use those coins have increased. The demand has increased, but today, unfortunately.”
Zhao says that he expects a decoupling between crypto and stocks. He also said that a correlation in market conditions emerged because people invest in both equities and digital assets.
“In theory, if we go by supply and demand, there’s a very simple logic to derive from that, but today, many people trading cryptocurrencies are also in the stock market so when the stock market tanks, people want to hold cash and they also sell cryptocurrencies. So today, on the short time frame, it’s kind of coupled, but in theory, they should be decoupled.”
Stay tuned for more news from the crypto space.