Changpeng Zhao says bear markets are beneficial for the Bitcoin market

In the long run, bearish sentiment is more beneficial for the crypto markets than an apparently endless upward trend. This was stated by Binance CEO Changpeng Zhao, according to Decrypt.

In his words, investors should not treat token prices as indicators of market health.

Instead, Zhao suggested focusing on the number of users buying and using digital currencies, as well as on the number of different blockchains and Web3 projects.

He added that the industry is in an early stage and the market is not yet “saturated”.

Zhao noted considerable progress in the development of the regulatory framework. In particular, he mentioned attempts by the US authorities to bring cryptocurrencies into existing financial structures – the “securities or commodities” framework.

“There will be some cryptocurrencies that resemble securities and, perhaps, resemble commodities or currency, but Bitcoin performs all three functions,” he said.

In Zhao’s view, governments should create a separate category for blockchain-based assets, defining them as a “new data-transfer technology”.

Earlier, Changpeng Zhao assessed the EU-approved MiCA regulation as “fantastic”, but “a bit strict” with respect to stablecoins.

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