Changpeng Zhao, the co-founder, and CEO of Binance, spoke about the increase of Bitcoin [BTC], Ethereum [ETH] and other cryptocurrencies holding on Binance and the possible catalyst for the price movements, in an interview CNBC Crypto Trader.
The CEO stated that despite the bear slowly taking control over the cryptocurrency market over the year, the exchange has seen a steady increase in the amount of Bitcoin [BTC] and other cryptocurrencies they hold in their cold wallets. He said:
“If you look at our cold wallets, the amount of BTC we hold and the amount of it, especially for BTC because its the constant volume coin, but we have just seen an increase in people depositing Bitcoin’s to our exchange.”
He went on to say that this scenario holds true for all the cryptocurrencies including Ethereum [ETH]. CZ exclaimed this to be a “very good sign”, stating that users are trusting Binance more to hold their Bitcoin. The Founder further remarked that when the trade volume decreases and the price stabilizes in the market, users usually withdraw their coins and transfer them to their wallets, however, Binance has seen the opposite reaction this time. CZ added:
“But for example but the when we see an increase in BTC Holdings over time that means most likely people are not moving BTC to us. so I don’t know if that’s the same situation with other exchanges but that’s a very obvious one for us”
He also spoke about whether Over-the-Counter [OTC] market has become the new market, as they are bringing in the institutional money and some market speculators are stating that the retail investor volume has dried up. He claimed that this could be possible as the OTC market have a large volume, similar to the online reported volume.
The CEO added:
“So there’s at least 50% of volumes that’s not being reported on CoinMarketCap but we [Binance] are not very heavy into that business. So we don’t know the real volumes.”
CZ further spoke about the possible catalysts that could result in a bull run. This is taking into account the announcement made Bakkt and Fidelity, which failed to have a massive impact on the market. The CEO stated that it was hard to predict the catalyst which could trigger the price. However, he claimed that the institutional investors stepping in the space will have a “strong trigger”.
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