Why is the Crypto Market Crashing? Binance’s CZ Weighs In
• The market took a beating over the past 24 hours, and certain altcoins performed a lot worse than others.
• Binance’s CEO – Changpeng Zhao – chips in on some of the ongoing narratives as to why the market is crashing.
• CZ claims that there’s a false narrative of Binance converting its holdings to fiat, while also claiming that the crypto reserves of the exchange increased throughout the past months, weeks, and days.
The market has taken a hit over the past 24 hours with some cryptocurrencies faring much worse than others. These include Cardano’s ADA, Solana’s SOL, NEAR, Polygon’s MATIC, and so forth. Bitcoin was down 3.4%, while Ethereum dropped by 5.7%.
Binance’s CZ Chips In
Binance’s CEO – Changpeng Zhao – chipped in on some of the ongoing narratives as to why this might be happening. CZ said that “no one really knows” but touched on a few ideas nonetheless. He explained that there are many sellers and buyers in the market with everyone having their own reasons for trading as they do.
CZ refuted one particular narrative suggesting that Binance had been converting its holdings into fiat currency saying instead that it had actually decreased its fiat and stablecoin reserves (used to pay for short-term salaries or expenses). He did however state that crypto reserves of Binance had increased throughout recent months/weeks/days.
CZ admitted he had no opinion on other narratives such as those around Elon Musk or Coinbase listing Dogecoin! He did however encourage people not to speculate too much about these things without being able to back up their theories with real evidence or facts!
In summary, no one truly knows why markets crash but speculation around Elon Musk and Coinbase listing Dogecoin have been circulating recently alongside numerous other theories!