Binance CEO Warns of Fluctuations in Crypto Prices… Here’s What to Expect!
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Answer Binance CEO Warns of Fluctuations in Crypto Prices… Here’s What to Expect!
The crypto market nowadays is one of the most talked about.
A lot of recent events have sparked attention about the direction the market is heading in the long term.
Although the market is currently operating as many analysts expected.
However, there are some noticeable obstacles, according to what some prominent figures in the economic markets, including the crypto market, see, by talking about the imminent fluctuations that could hit the raging big bull anytime soon.
Mohamed El-Erian, the former CEO of Pimco, spoke to Fox News over the weekend and emphasized that while the market has been commendably stable, it may be short-lived.Read:Bitcoin breaks above $10,000 for the first time since February
His reasoning is that the Federal Reserve has triggered a liquidity wave that has greatly enhanced price stability, and that in the long run, things must change. He stated the following:
I am a little concerned that this wonderful world we used to live in with low volatility, and everything going up, may all stop with higher volatility.
If you are an investor, you will realize the massive wave of liquidity provided by the Federal Reserve.
It must be remembered that the waves are coming.
So I will be very attentive.
Similarly, the CEO of Binance took to Twitter to warn of the upcoming volatility.
Without context, he told Changpeng Zhao that he expects very high volatility in cryptocurrencies over the next few months.
Shortly after his tweets, Binance US recorded a 90% drop in the bitcoin price, as bitcoin was trading at $8,200 for a short period of time on the platform, when in fact it lost about $1,000 of its $65,000 price value on the exchanges. the other, before it bounces back.
The cause of the sudden crash was revealed and attributed to an institutional trader who had an error in his trading algorithm which resulted in a sell-off at low prices.Read:Learn about the details of the NEO partnership and the TomoChain project
While the issue has now been resolved, Zhao’s warning still stands, especially as business activities continue to rise in the market.Read:Central bankers from “Davos”: Digital currencies are not in our plans at the moment
The arrival of the Bitcoin ETF boosted the price of Bitcoin, but it wouldn’t be surprising that lower trading volumes could affect market sentiment and trigger another sell-off.
On the other hand, the excessive leverage that often occurs can lead to another vulnerability and a big selloff.
However, it is important to remember in the long-term that the majority of the market is very optimistic about Bitcoin, as they describe these market imperfections as short-term hindrances.
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