Bear Market: CZ believes this is good news for the market!

In the world of cryptocurrencies, some voices carry more weight than others. Among these voices with international resonance is Changpeng Zhao (CZ), the CEO of the Binance platform. Asked about the bear market that has been raging for months, the head of the world's number one stock exchange believes this is an essential step. And that is another sign of the youth of the market.

Bear market: it's good according to CZ!

In a video interview at the Mainnet conference, taking place from 21 to 23 September, the CEO of the Binance platform expressed his opinion on the current digital asset market. He believes the current bear market for Bitcoin and altcoins is actually quite healthy and urged those in attendance to "get through the winter".

In a conversation with Ryan Selkis, CEO of Messari, the company that organizes the annual conference, CZ made his thoughts clear. He believes that the bear market will clean it up and that a cryptocurrency market cycle has a "normal" duration of 4 years. While these bearish phases seem logical, CZ goes further, believing that the scope of the future bull market also depends on this bearish phase.

The price corrections are actually positive. The Investors they should not consider the price of tokens as a signal of the trend of the cryptocurrency market.

According to CZ, there are other more interesting variables for judging the health of the cryptocurrency market. Starting with the number of people who buy digital goods. And on this front, although the trend is slowing, the number of digital asset owners continues to increase around the world. The explosion in the number of blockchains and the increase in web-oriented initiatives3 are also variables that he considers most interesting.

The market is still young!

In his speech, CZ linked the bear market being healthy to its relative youth. According to him, despite the strong expansion in recent months, there is still a lot of room for growth.

Cryptocurrency is so young. We are not in a saturated market.

And the market data seems to prove him right. In fact, the numbers tend to show that, despite the negative market, the number of projects continues to grow. More than 22.000 digital assets are currently available.

The speech by the head of Binance was also an opportunity to return to the question of regulation. A point on which he too remains very optimistic. He also reacted enthusiastically to the revelations about the MiCA law. Although the bill was originally intended to severely limit the use of stablecoins, the idea was abandoned. At least for stable currencies denominated in currencies other than the euro. As for the regulatory issue, he told the conference that the platform and the market are moving in the right direction. CZ also stressed the importance of communication between different actors and regulators around the world.

CZ also expressed his opinion on the future of the sector and on regulation. In his opinion, governments could create a new class of securities for blockchain-based assets.