The current cryptocurrency winter has been brutal to the cryptocurrency industry as a whole from cryptocurrency giants like Steemit laying off more than half of its workforce to stay afloat to some cryptocurrency startups shutting down operations.
Reacting to the prolonged crypto bears cycle, Binance CEO Changpeng ‘CZ’ Zhao expressed his skepticism about whether or not the current Cryptocorrection phase is over.
CZ while speaking to Bloomberg, he explained that cryptocurrency as regards valuation is a field of speculation and its volatility should not come as a surprise. The blockchain entrepreneur brought to light things that will influence the cryptocurrency space in a longer term, which are killer applications.
The CEO expressing his doubts said;
“I think the price is a powerful attraction for a lot of speculation, but the field is going to grow by builders, the guys who build applications and adds to the adoption of cryptocurrencies in the long-term.”
Last year, the intense hype about cryptocurrencies greatly improved the financial value of almost every cryptoasset, including leading cryptoasset Bitcoin, which establishment an all-time high near $20,000. Aside from that a lot of people sank their funds and cryptocurrencies into a series of new blockchain projects that promised to “revolutionalize” the cryptomarket with their killer apps.
The farce, however, did not last as a lot of these projects failed to create even an alpha version of their ambitious plans, in turn wasting crypto investors fiat money and digital tokens, the effect has reflected through the cryptomarket prolonged bear which has led many to say that it is dying.
Even with the harsh crypto cooldown, CZ believes that the cryptospace will survive, pointing out the presence of technologists that would evolve the cryptospace with the creation of their user-friendly applications. “That’s happening regardless of where the price moves,” the CEO added.
A Potential Bottom Formation
At present, the cryptoindustry is looking at a potential bottom formation after it recovered from approximately $100 billion to $128 billion within a week. Bitcoin cash surprisingly showed an extended upside recovery with other leading tokens like Bitcoin, Ethereum together in vision.
The technical Indices of the present cryptowinter put digital tokens in an oversold region, which shows that the upside action is nothing but a quick reaction of cryptotraders exiting their shorts.
The leading cryptoasset Bitcoin is predicted to create a double bottom during the next wave of selling which according to Bloomberg, could even witness a crash towards $1500.
The entrepreneur has however expressed his optimism for next year’s cryptomarket, stating that his company will launch 10 more fiat-enabled cryptoexchanges across the world.
“None of our plans changed, we are still pushing forward very aggressively”, the CEO confirmed.