Binance Co-Founder Not Worried About Recent Bitcoin Selloff


Jhe recent selloff in Bitcoin, which took it back below $21,000 at one point, certainly scares off the majority of investors, especially those new to digital assets. Some industry players, however, are undeterred by the recent widespread drop in cryptocurrency prices.

Binance co-founder and chief marketing officer Yi He remains steadfast in the face of 2022’s downward pressure on cryptocurrency prices. Stock market volatility spills over into the crypto market, making the two correlated.

This correlation runs counter to bitcoin pundits who see the asset as an alternative path that deviates from the stock market. Still, Ye compared the recent selloff to other price drops and doesn’t think it’s getting progressively worse from previous cases.

“If you just look at the price of bitcoin right now, I don’t think it’s totally winter,” Ye told Yahoo Finance. “Whenever there is a winter, it is always warmer than the last winter. So sometimes you can say it’s 100% winter. Like if you look at 2014, 2015 or two years ago, I think the most unpleasant things are probably stronger than last summer. So right now, I don’t really think it’s that terrible.”

A maturing futures market

Last year saw the introduction of a bitcoin-linked investment vehicle to traditional financial markets. An exchange-traded fund (ETF) focused on bitcoin futures has certainly helped propel the profile of the major cryptocurrency through a bullish 2021.

The ETF gave investors the opportunity to gain exposure to bitcoin without directly investing in the coin itself. For security-conscious investors via online cryptocurrency exchanges, the ProShares Bitcoin ETF (BITO) offers the opportunity to invest with confidence in a traditional market exchange – in this case, the New York Stock Exchange.

As the crypto market continues to mature in these volatile times, the FinancialTimes noted that the future of crypto trading is actually in futures. Adam Farthing, director of risk for Japan at specialist crypto market maker B2C2, noted that “price swings have been much more subdued in crypto futures than elsewhere, and dislocations between exchanges – which may give rise to arbitrage opportunities – have been fewer than in previous episodes of market turmoil.”

“With all the doom and gloom around the crypto markets, it’s worth noting that the futures markets are behaving more and more in a mature fashion,” Farthing said.

This could be a boon for pathways to more future crypto products like BITO. A spot-price bitcoin ETF in the United States is already a possibility it is looming.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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