If You Think Crypto Is Volatile, Look at Stocks: Binance CEO -Breaking
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© Reuters. Take a look at stocks if you think crypto is volatile: Binance CEO- Changpeng Zhao claimed that the volatility of crypto market results from the stock market falling off.
- He posted several tweets about the fall of global crypto markets.
- Zhao recommended that risk management be considered in light of the fall of crypto.
Crypto investors and enthusiasts have been in financial distress due to the worsening market. BTC and the altcoins that have the lowest market caps are all currently in decline.
Changpeng Zhao, Binance’s CEO, tweeted that the stock markets are currently just as volatile as crypto. He also included screenshots from the Coinbase and Netflix stock markets, mentioning respectively the -84% dip and the -72% drop. He also adds that it is vital to “learn about risk management.”
You should look at stocks if you believe crypto volatile. -84%, -72%.Not that it makes the situation any better in crypto, but… zoom out. Find out more about risk management. pic.twitter.com/eoPsRUrGhj
— CZ Binance (@cz_binance) May 12, 2022
The stock market is currently showing red. Apple (NASDAQ) has a current price of $146.5 with a 5.18% dip. Microsoft (NASDAQ) trades at $260.55, -3.32%, and Google (NASDAQ) at $2279.2 -0.54%. More significantly, Amazon (NASDAQ;) is down 3.2%, Tesla (NASDAQ.:) (-8.25%) and Meta Platforms are also showing declines.
Market analysts are of the opinion that crypto and the stock markets almost have a direct relationship. If the value of the global stock market falls, so does the market for crypto. This appears to be the reason for crypto’s current volatility.
Changpeng Zhao responded to queries on market conditions by saying that while we must respect and be careful with the market. “It goes up and down in cycles.”
Many people asked me questions about markets. The market must be respected, but we should also exercise caution. The market fluctuates in cycles. And especially the fact that it doesn’t always make sense. 1/4
— CZ Binance (@cz_binance) May 11, 2022
Also, he said that stablecoin was one of many new innovations in the market. Stablecoins are hot when they are. It can become a vicious cycle if they fall. He then explains that not all innovations will be successful.
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