It’s just simple math, says CZ.

Changpeng Zhao (CZ), chief executive and founder of leading cryptocurrency exchange Binance, spoke on the prospects of bitcoin (BTC) amidst the coronavirus.

He was speaking at the Virtual Blockchain Conference BlockDown 2020 being held in response to the pandemic between April 16 – 17. (COINTELEGRAPH)

The March crash, and why it lock stepped with traditional assets

Here’s an interesting viewpoint on why the supposedly inverse correlation between the fiat asset markets and crypto markets broke down, completely.

CZ confesses that he too was caught by surprise by the impact of the decline in mainstream markets on cryptos.

“Everyone thought the Bitcoin price will go up when there’s an economic crisis,” he clarified. “But basically what happened is that when [the mainstream] market tanked by 5% there was a lot of money disappearing from people’s hands.”

How bitcoin is faring

CZ chose to put a positive spin on the massive volatility in both traditional and crypto markets. Acknowledging a rocky 2020 for both kinds of markets, he pointed out that bitcoin trading volume has jumped between 3 – 5 times.

He pointed to the historical tendency for bitcoin to trade low volumes whenever the crypto was stabilizing around a market bottom. However, this scenario reversed this around at the time of the March meltdown.

“In this drop, we actually see much higher trading volumes,” CZ observed. “Usually when that happens, the prices don’t stay low for too long”… and indicates that more investors are entering the industry attracted by low prices.

How helicopter money will affect bitcoin

CZ said traders were unreasonably expecting that central bank stimulus measures would push up crypto prices in the short term.

He clarified that there were many ifs and buts between the Fed’s money printing and the cash reaching people’s hands.

So it would be a while (“a few months or so”) before cryptos would react bullishly to quantitative easing (QE).

“Mathematics works. If you increase the supply of the fiat currency and bitcoin is a limited asset, mathematics will eventually work. So I think we’ll see impacts in a few months,” CZ said.

How Binance is functioning amid the pandemic

(altcoinbuzz.io)

According to CZ, Binance traditionally used a remote working model, and therefore operations were not affected by lockdowns and social distancing.

Meanwhile, the team is looking forward to new products and projects that will get people to stick with cryptos for longer.

New products on the anvil include Binance Chain and the Binance Debit card.

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