BTC presently trading at $19,406 (roughly Rs. 15.7 lakh)
Zhao has suggested BTC investors to be patient
Recession-like climate caused BTC values to dip
In November 2021, BTC touched its last all-time high (ATH) around the price point of $68,000
Photo Credit: Reuters
Binance CEO Changpeng Zhao believes that the Bitcoin bear market trajectory will prove to be good for the crypto market in the long run. A bear market is a prolonged drop in investment prices. Generally, a bear market happens when a broad market index falls by 20 percent or more from its high price. As per Zhao, a bear market in regular intervals is ‘healthier' in the long term than a constant upward trend for cryptocurrencies. He also stated that there has been considerable progress in a positive direction for regulatory frameworks.
Zhao was in conversation with Messari CEO Ryan Selkis when he said that a four-year crypto market cycle is normal. In November 2021, BTC touched its last all-time high (ATH) around the price point of $68,000 (roughly Rs. 55 lakh). Ten months later at this point, BTC is trading at $19,406 (roughly Rs. 15.7 lakh). Amid Russia's war with Ukraine, rising prices of oil and other imported amenities, and interest rate spikes in the US — several investors pulled back from Bitcoin and other cryptocurrencies due to a low-risk appetite.
As per Zhao, investors should look at token prices as signs of how the crypto market is doing, Decrypt reported.
“Price corrections are actually good. Crypto is so early. We're not in a saturated market. We have actually seen a lot of progress in the positive direction for regulatory frameworks,” the report quoted Zhao as saying.
In a recent conversation with Gadgets 360, the research team at crypto exchange CoinDCX highlighted that this year, the average miner revenue reduced multi-fold, affecting BTC's hash rate.
“2021 was a good year for Bitcoin miners, it topped out around Q4 2021 when the miner revenue peaked at $4.8 billion (roughly Rs. 38,900 crore). Since then, the average miner revenue has significantly reduced with a corresponding increase in the hash rate partly due to improved ASICs consequently increasing the difficulty levels and making mining less profitable,” the CoinDCX team said.
In the last three quarters, Average Daily Miner Revenues have reduced three quarters in a row marking a 27 percent, 22 percent, and 33 percent reduction in Q1, Q2, and Q3 2022 respectively.
Industry insiders expect that BTC mining levels could remain lower for an extended period in light of rising energy costs.
While Zhao recommends that Bitcoin investors remain patient, Micheal Saylor, the Co-Founder and Chairman of the business intelligence software MicroStrategy has reportedly projected that BTC would touch $500,000 (roughly Rs. 4 crore) in the next decade if it matches the market capitalisation of gold, and its price will reach $69,000 (roughly Rs. 55 lakh) sometime in the next few years.
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