24.10.2021

Binance: how long a new stage of cryptocurrency market growth can last

Binance CEO Changpeng Zhao is not disappointed with Bitcoin’s current bull cycle. According to him, bull run – that is, the growth stage of the cryptocurrency market – will continue until 2024, which means that investors still have plenty of time to accumulate enough cryptocurrency to generate potential profit.

Zhao shared his predictions and hopes for the growth of BTC in an interview with Ran Neuner, co-founder of On-Chain Capital.

To begin with, let us recall that the cryptocurrency market has really moved into a growth stage. This was primarily hinted at by the famous flight of the decentralized finance industry in the summer of 2020, when new projects brought investors hundreds of percent of profit in just a few days. The users especially remember the Yearn Finance YFI project, which grew from a couple of tens of dollars to 43 thousand – and this happened in two months.

Finally, at the end of 2020, Bitcoin attracted the attention of investors. As a result, he was not only able to break his own record of the course of 20 thousand dollars, which was set in December 2017, but also more than double it. The current maximum value of the first cryptocurrency is $ 41,940 – it was set by BTC on January 8, 2021.

For clarity, we present a graph of the Bitcoin exchange rate for the year.

Since there is hardly anyone now in doubt about the beginning of a new growth cycle for cryptocurrencies, it is necessary to find out how long it can last. Changpeng Zhao shared his opinion on this matter.

What will happen to Bitcoin in the coming years?

Here is one of Zhao’s quotes in which he talks about the current situation. The replica is given by CryptoSlate.

We just see the flat part of the wave. The big wave has not yet arrived. I think in 2021, 2022, 2023 it will generally take two to three years, maybe four years, for this cycle to reach its maximum.

That is, according to Changpen, the current cryptocurrency movements were essentially just a warm-up to serious results. Note that this may indeed be the case, especially if we analyze the previous stages of growth. For example, in January 2015, Bitcoin was valued at $ 205, and a year later it was given $ 456. This means that here the rate has also doubled – what has already happened with BTC in relation to its maximum the day before.

In addition, many analysts believe that this year we will still have an altcoin race, which regularly begins with the relative stabilization of Bitcoin. So in general, the near future for the industry really seems positive.

It is important to note, however, that no one can accurately predict the future. Zhao himself stressed that he may well be wrong with the timing. However, as Neuner pointed out, Binance is in a unique position because the firm has access to statistics to model such predictions. This includes data on the number of registrations of new accounts of crypto traders for a certain period, which means that exchange analysts can really see the situation with user activity and compare it with the rate of growth of the indicator in the past.

The head of Binance also builds his forecast based on the history of previous bullish cycles. Zhao roughly calculated the duration of the growth phases of BTC in 2017 and 2013. He also added that each subsequent bull cycle increases in length, which in his opinion is a characteristic of increasing market capitalization over time.

It took Bitcoin three years, from the peak of 2017, to reach $ 20K again at the end of last year. So if history repeats itself, crypto investors may have three or four years ahead of reaching the next peak of the current cycle – at least this is the point of view of the entrepreneur.

Keep in mind that Bitcoin has been below its previous record for three years – a significant amount of time. And against this background, Changpen’s landmarks do not seem to be something supernatural.

We believe that using Changpen’s words as an unambiguous reference point is not worth it, since in the open market – which is the niche of cryptocurrencies – anything can happen. However, an important conclusion can still be drawn from this. The coin market has indeed entered the growth stage and is in its early stages. This means that the current period is the best to start taking an interest in blockchain assets a little more. This is especially true for beginners who are not yet familiar with the basics of cryptocurrencies and do not realize their potential.

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