The crypto market witnessed one of the sharpest declines in a short period, as the price of Bitcoin reached the level of 3800 dollars, which subsequently contributed to the decline of most of the alternative cryptocurrencies.

This led to the crypto market wiping out nearly $100 billion of its market value, which fell from $225 billion to $125 billion over a one-day trading period.

The founder of the cryptocurrency exchange Binance previously stated that the Corona virus was not the cause of the collapse of global financial markets.

To once again share his thoughts on the real reason behind these recent sell-offs, stating that he still views Bitcoin as a safe asset even despite its recent association with traditional markets.

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Binance founder explains the real reason behind the crypto market crash:

Recently, the CEO of Binance likened the recent Bitcoin drop to a “Titanic-related floating swim that passengers resort to when they sink.”

Many analysts and investors were disappointed to see bitcoin’s decline go hand in hand with traditional markets, invalidating bitcoin as a “safe haven”.

Often called “CZ”, Changpeng Zhao, CEO and founder of Binance, spoke out about invalidating that narrative in a recent blog post, explaining that he still viewed Bitcoin and other digital currencies as safe assets, but the extreme turmoil in the global economy was simply greater. than the small crypto market can afford.

He added, explaining that the crypto market is like a floating swimming pool linked to the Titanic, which passengers resort to when drowning, as investors will eventually resort to the cryptocurrency market.

And the stated Subsequently:

Suppose you are swimming in the water with the help of a floater, she will work and help you to swim in the water.

Now let’s say you’re on the Titanic while it’s sinking, and the floating swim is attached to the ship.

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Will floating swimming save you?

No, you won’t.

Because buoyancy is no longer working? But the floating swimming pool’s floating properties still work.

The real reason behind the CZ market crash:

CZ went on to explain that the recent sell-off in the crypto market was caused by two main factors.

Or not: He notes that crypto investors with weak hands are likely to take the recent turmoil in traditional markets as a reason to justify an exit from the crypto mode, creating a torrent of selling pressure that has continued as prices fell.

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secondly: Many investors are likely to resort to selling their crypto holdings in order to free up capital in order to pay rent and prepare for possible changes in their job situation due to global instability.

Since all of these investors have already left the relatively young crypto market, it is very likely that a long-term bottom is in place and that traditional investors may start entering new positions in crypto if Bitcoin and other digital assets are able to start decoupling from the traditional markets.

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