Bitcoin is less volatile than the shares of companies such as Apple and Tesla, said Binance CEO Changpeng Zhao in an interview with Bloomberg TV.
“There’s always a large number of people having the herd mentality than the guys who actually do serious research.”@cz_binance, founder of the world’s largest cryptocurrency exchange Binance, discusses volatility of #cryptocurrency markets on @BloombergTV pic.twitter.com/UAT4Kpy1tu
— Bloomberg (@business) May 3, 2021
According to Zhao, significant price fluctuations are observed not only in the crypto market but also in the stock market. At the same time, Bitcoin is less volatile than the shares of companies with a market capitalization comparable to it, added the CEO of Binance.
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«Volatility is everywhere. This is not unique to the cryptocurrency market,» Zhao noted.
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In his words, yield-hunters are often to blame. They do not analyze the market, instead investing money in assets on the back of positive news.
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«There are always more people driven by herd instinct than those who actually conduct serious research. When negative news surfaces, they exit the market; when positive news surfaces, they try to re-enter. This drives greater volatility,» Zhao said.
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According to Woobull, Bitcoin’s 60-day volatility has been easing since early 2021. However, the same measure for Tesla and Apple shares remains at a lower level.
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Earlier Zhao advised traders who are stressed by every price drop to switch strategy to a ‘buy and hold’ approach. In his view, this is not the best recommendation for Binance’s business, but a good tip for beginners.
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As noted, the famous American investor Bill Miller described bitcoin volatility as \”the price\” to pay for its performance.
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