The CEO of Binance, Changpeng Zhao, thinks that the Bitcoin bear market would benefit the cryptocurrency sector in the long term. A bear market is a sustained decline in the value of investments. Typically, a bear market occurs when a broad market index falls by at least 20 percent from its peak. According to Zhao, a periodic bear market is 'healthier' than a consistent rising trend for cryptocurrencies over the long run. In addition, he claimed that regulatory systems had made tremendous development in a constructive direction.
Zhao was conversing with Ryan Selkis, the CEO of Messari when he said that a four-year crypto market cycle is typical. In November 2021, Bitcoin reached its last all-time high (ATH) at $68,000. (roughly Rs. 55 lakh). At this time, ten months later, BTC is trading at $19,406. (roughly Rs. 15.7 lakh). Amid Russia's conflict with Ukraine, increasing oil and other imported commodity costs, and US interest rate rises, several investors withdrew from Bitcoin and other cryptocurrencies owing to their low-risk appetite.
"Price adjustments are beneficial. Crypto is so primitive. The market is not saturated. According to the article, Zhao said that regulatory frameworks had made significant strides.
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Current Rate of BTC
In a recent chat, the research team at the cryptocurrency exchange CoinDCX noted that this year, the average miner income decreased by several, impacting BTC's hash rate.
"2021 was a prosperous year for Bitcoin miners, with revenues reaching a high of $4.8 billion in the fourth quarter" (roughly Rs. 38,900 crores). Since then, the average miner income has decreased dramatically with a commensurate rise in the hash rate, partly owing to upgraded ASICs, which have increased difficulty levels and made mining less viable, according to the CoinDCX team.
Average Daily Miner Revenues have declined for three consecutive quarters, falling by 27%, 22%, and 33% in Q1, Q2, and Q3 2022, respectively.
As a result of increased energy prices, industry experts anticipate that BTC mining levels will stay low for a long period.
Micheal Saylor, the Co-Founder and Chairman of the business intelligence software MicroStrategy, has reportedly predicted that BTC will reach $500,000 (approximately Rs. 4 crores) in the next decade if its market capitalization matches that of gold, and its price will reach $69,000 (approximately Rs. 55 lakh) within the next few years.
Featured image: Binance
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