Changpeng Zhao, the co-founder and CEO of Binance, talked about the rise of Bitcoin [BTC], Ethereum [ETH] and other cryptocurrencies governing Binance and the possible catalyst for price movements, in a CNBC Crypto Trader interview.
The CEO stated that although the bear has slowly taken control of the cryptocurrency market during the year, the exchange has seen a steady increase in the amount of Bitcoin [BTC] and other cryptocurrencies that they keep in their cold portfolios. He said:
"If you look at our cold wallets, the amount of BTC we hold and the amount of it, especially for BTC because it's the constant volume currency, but we've just seen an increase in people depositing Bitcoin in our exchange."
He went on to say that this scenario is valid for all cryptocurrencies including Ethereum [ETH]. CZ has exclaimed that this is a "very good signal", stating that users trust more than Binance to keep their Bitcoin. The Founder also noted that when the volume of trade 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 when we see an increase in BTC Holdings over time, it means people most likely do not transfer BTC to us, so I do not know if this is the same situation with other exchanges, but this is very obvious to us. "
He also talked about Over the Counter [OTC] the market has become the new market, as they are introducing institutional money and some market speculators claim that the volume of retail investors has dried up. He said this could be possible because the OTC market has a large volume, similar to the volume reported online.
The CEO added:
"So there is at least 50% of the volumes that are not reported on CoinMarketCap but us [Binance] they are not very heavy in this business. So we do not know the true volumes ".
CZ also talked about the possible catalysts that could lead to an upward trend. This is taking into account the announcement made by Bakkt and Fidelity, which have not had a huge impact on the market. The CEO stated that it is difficult to predict the catalyst that could trigger the price. However, he said that institutional investors entering the space will have a "strong trigger".
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