Binance CEO Changpeng Zhao (CZ), stated that the crypto market is severely undervalued since most of the cryptocurrencies are in the oversold territory. Speaking at the Binance Blockchain Week in Singapore this Tuesday, CZ shared his views on the 2017 bull run and the 2018 bear run.
On the 2017 bull run
The crypto market experienced an unprecedented bull run in 2017 when Bitcoin’s price rose to $20,000 and the overall crypto market cap went all the way up to $800 billion. As a result, the crypto space attracted a lot of new players and projects. Unfortunately, most of these projects were either useless or just outright scams which eventually caused the entire crypto market to plummet. Regarding this, CZ said:
“I believe… at the end of 2017, there was definitely an overshoot on the price side… There was a lot of guys rushing in, very simple projects with very simple whitepapers. […] Then of course as everybody rushed in…once that massive rush-in finishes the price declines.”
On the 2018 bear run
In 2018, the crypto space started an elongated bear run which is still going strong. Bitcoin’s price has fallen from $20,000 to $3,600, as of writing. Regarding the bear run, CZ believes that the overall crypto market is massively undervalued since most of the cryptocurrencies are in the oversold territory.
“We’ve been in a bear market for a very long stretch, probably the longest in history for Bitcoin right now […] I think right now my personal view is that we are actually overshooting on the lower side now”
He also mentioned that even though the markets are down, many developers are still building new projects in the space, which bodes well for the future. He concluded by saying:
“I’m very, very confident that this space will get so much bigger, we just got to be prepared for when that happens.”