United States senators have requested information from Silvergate Capital regarding the firm's association with FTX.
Changpeng ‘CZ’ Zhao, CEO of Binance believes that Bitcoin s stability not only rivals but also trumps that of stock and shares of massive companies like Apple and Tesla.
Looking at the volatility of Bitcoin compared to that of similarly-sized companies by market cap, CZ noted that roller coaster prices aren’t unique to cryptocurrency Data from Wooball Charts shows that the 60-day volatility of Bitcoin has been decreasing since the beginning of the year.
“There’s always a large number of people having the herd mentality than the guys who actually do serious research.”@cz_binance, founder of the world’s largest cryptocurrency exchange Binance, discusses volatility of #cryptocurrency markets on @BloombergTV pic.twitter.com/UAT4Kpy1tu
— Bloomberg (@business) May 3, 2021
As CZ noted, there seems to be less of a choppy range in Bitcoin prices as more investors are looking to hold or seriously trade within the cryptocurrency market. As he put it in his interview with Bloom, there’s “always a large number of people having the herd mentality than the guys who actually do serious research.” And those who do the research tend to understand and invest in the project or the market. The “die-hard” cryptocurrency fans, according to CZ, are more likely to lead to stability in the market and the herd followers will rush in and out resulting in volatility. As more investors become fans, cryptocurrency as an industry will more likely see more stable volumes and values.
CZ has been a long-term bull in the cryptocurrency industry, revealing last month that he has invested nearly all of his wealth into cryptocurrency. With bullish moves like this, more whales entering the market, and institutional interest picking up consistently, the market might see slight waves of volatility but with more strength and inherent support than previously. Time will tell whether CZ’s sentiments will hold against those longer-term investors who opt to sell off for profit as the market cools.