Changpeng Zhao, the former CEO of Binance, shares his insights on the reasons behind investor panic in the Bitcoin market and offers ways to overcome fear.
Causes of Panic in the Bitcoin Market
Changpeng Zhao points out that the main factor leading to sell-offs is a "lack of understanding" among investors. According to him, those who buy Bitcoin without personal conviction are more likely to panic during volatility.
Changpeng Zhao's Recommendations
CZ advises raising financial and technological education as a primary way to avoid panic. He warns those who sell assets out of fear and suggests "reading more" to build confidence in their investments. He states, "If you sold BTC below $100,000, you should slap yourself."
Increasing Interest in Bitcoin
Amid recent milestones, such as surpassing the $100,000 mark, a large number of new wallets have been registered, indicating a strong adoption of cryptocurrency. Institutional investors are also viewing Bitcoin as a reliable asset. For instance, Michael Saylor's company now holds 555,450 BTC, reinforcing a long-term investment strategy.
Changpeng Zhao's wisdom is relevant in the face of cryptocurrency market volatility: educational initiatives and confidence in one's actions can significantly impact the success of investments in Bitcoin.
