Binance chief Changpeng Zhao said that he continues to remain bullish on crypto for the long term, and as per historical trends, the next bull run should happen in 2025.
On Wednesday, July 5, Binance CEO Changpeng Zhao said that he’s expecting heavy trading volumes in the crypto space over the next few months. As a result, he has been preparing the crypto trading p[latform in this regard.
CZ’s comments came during a Twitter Spaces “ask me anything” event stating that the company has been doing a lot of preparations to ready its systems during the possible surge in trading activity. “If we look at historical patterns, we want to be prepared for higher volumes,” he said.
Volumes have been increasing in recent weeks, marking a shift from the low activity seen since the collapse of the FTX exchange in November. Zhao mentioned various factors contributing to this recent surge, including the filing of new spot Bitcoin ETFs and the upcoming Bitcoin halving event anticipated to take place in April or May of 2024.
On the other hand, institutional interest in the crypto space is also growing as trading activity in Bitcoin derivative products shoots up. In June, the trading volume of Bitcoin futures on the Chicago Mercantile Exchange (CME) rose by 28.6% to reach $37.9 billion. Additionally, the value of Bitcoin Micro Futures increased by 21.1% to $702 million, as per CCData.
There was also a notable increase in Ethereum-based instruments, with over 97,000 ETH Futures contracts traded, representing a 10.8% increase. The trading volume for these contracts reached $46.8 billion, marking a 24.6% increase when valued in USD.
Binance Chief Is Bullish on Crypto
Zhao said that as per the historical patterns, there’s a bull run every four years in the market. As a result, he expects that the next bull run could happen in 2025, as “the year after Bitcoin halving is usually the bull year”.
Although he admitted that it’s hard to predict the future, Zhao said that he remains bullish for the long term. “We’re still very early. I think the industry still has a lot of room to grow,” Zhao said. “So I’m always bullish. I’m a builder, so I always have a positive outlook on things.”
Binance is currently involved in a legal dispute with U.S. regulators, including the Commodity Futures Trading Commission and the Securities and Exchange Commission. The allegations suggest that Binance, as well as Zhao, violated federal laws. Regarding these lawsuits, Zhao expressed Binance’s intention to find a swift and fair resolution that satisfies all parties involved.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
