If You Think Crypto Is Volatile, Look at Stocks: Binance CEO
2022.05.12 13:46
If You Think Crypto Is Volatile, Look at Stocks: Binance CEO
- Changpeng Zhao said that the crypto market is volatile due to the stock market diving off.
- He had posted several tweets regarding the global crypto market fall.
- Zhao also suggested learning about risk management due to the crypto fall.
The worsened crypto market has put crypto enthusiasts and investors in distress. From BTC to the altcoins with the lowest market cap, almost all the cryptocurrencies are currently trading downwards with huge plunges.
Contextually, Binance CEO Changpeng Zhao tweeted that the stock market is also currently as volatile as the crypto market. He added screenshots of the Coinbase (NASDAQ:COIN) and Netflix (NASDAQ:NFLX) stock markets mentioning the -84% and -72% dip respectively. He also adds that it is vital to “learn about risk management.”
If you think crypto is volatile, look at stocks. -84%, -72%.Not that it makes the situation any better in crypto, but… zoom out. Learn about risk management. pic.twitter.com/eoPsRUrGhj
— CZ Binance (@cz_binance) May 12, 2022
While looking at the stock market, currently, most of the large-cap stocks indicate red: Apple (NASDAQ:AAPL) is registered at a price of $146.5, with a 5.18% dip, Microsoft (NASDAQ:MSFT) trades at $260.55 (-3.32%), and Google (NASDAQ:GOOGL) at $2279.2 (-0.54%). Moreso, Amazon (NASDAQ:AMZN) (-3.2%), Tesla (NASDAQ:TSLA) (-8.25%), and Meta Platforms (-4.5%) also show downticks.
Notably, many market analysts believe that the stock market is almost directly proportional to the crypto market, which means that when the global stock value decreases, the global crypto market also takes a hit. This appears to be the reason for crypto’s current volatility.
Moreover, in replying to the questions on market conditions, Changpeng Zhao said that we need to respect the market but with a level of caution. “It goes up and down in cycles.”
Many asked me about the markets today. We need to respect the market, with a level of caution too. It goes up and down in cycles. And especially the fact that it doesn’t always make sense. 1/4
— CZ Binance (@cz_binance) May 11, 2022
He also remarked that we are in a new market with many innovations, and stablecoin is one of them. When they are hot, they are all the rage. When they drop, it can be a vicious circle. With this, he comes to the point that some innovations would be successful and some would not.
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