Changpeng Zhao Founder and CEO of the world’s biggest crypto-exchange company Binance, said bitcoin still holds very good position in the market of cryptocurrency despite of 70 percent fall since 2018.
In a cryptocurrency researcher interview with reporter in Zug, Switzerland, Changpeng Zhao said the cryptocurrency sector holds a better position than the past year in terms of infrastructure, volume, mainstream interest and price. He also said that he checked, bitcoin price was $2500 in the year 2017, today $6800. Trading volume for bitcoin was 780 million a year ago, today is 3.4 billion.
As it was reported in a local news paper, In the year 2017, the price has increased of bitcoin by more than 2,150 percent, ranging from $890 to $20,000. This increased the volume of bitcoin by five-fold as compared to mid-2017 as a result of surge in demand. By the mid-2017, there wasn’t any proper infrastructure in cryptocurrency sector for retail and institutional investors. Since July 2018, there is an institutional market called Coinbase Custody, with which hedge funds, pensions and academic institutions, can purchase millions of dollars worth of digital assets like ether and bitcoin.
Morgan Stanley, JP Morgan and Goldman Sachs such Financial institutions have come out with their idea and intent of facilitating the growing client demands towards cryptocurrencies. According to Lloyd Blankfein CEO of Goldman Sachs, consensus currencies (like cryptocurrency) can also emerge as dominant mediums of exchange. He also pressured on the negativity of the thought of cryptocurrency that they could not work because of their basis being new fundamentals and principles.
Bitcoin recent drop in the price was due to the bubble of retail investors. Fear of missing out will be running among large-scale investors and institutions with the recognition of cryptocurrencies as an emerging asset class by banks.