Binance CEO Richard Teng said the recent 8% decline in Crypto's total market capitalization represents a tactical hideaway rather than a reversal of structural trends.
Social media post on February 25th, Teng It's attracting attention That historical data suggests that crypto markets, like traditional financial assets, respond to macroeconomic changes, but show strong resilience over time.
He referenced the slump in 2022. Meanwhile, Bitcoin (BTC) temporarily fell below $20,000 in a Federal Reserve hike before recovering as market conditions stabilized.
Stance that drives dip
Teng stressed that the current slump does not show a fundamental weakness in the crypto sector, but is consistent with previous short-term market adjustments. Price volatility often governs the debate, but the drivers underlying long-term growth remain the same.
The institution's profits continue to grow, with substantial inflows of trade exchange funds (ETFs) and regular new applications submissions. Binance is also observing a steady influx of new users and strengthening the sector's continued adoption.
Teng attributed the recent crash to macroeconomic factors, primarily the Fed's cautious attitude towards interest rate reductions.
“It is important to note that the Fed's suspension is temporary. The recent DIP comes mainly from the Fed's careful approach to speed reductions. The possibility of a March cut is It may seem low, but it is important to remember that monetary policy is data-driven.”
Teng said the readjustment has led to a short-term market adjustment, but the overall trajectory remains data dependent. He added that The decline in inflation or the labor market situation may weaken, and the Fed may revise its monetary policy stance and spark new market momentum.
An opportunity appears
Although often unsettled, Binance's CEO also highlighted that market pullbacks provide strategic opportunities for seasoned investors.
Crypto is matured into an asset class integrated with global finance, and has repeatedly demonstrated its ability to recover from a macroeconomically-led slump.
He evaluated this resilience underscored the importance of maintaining a long-term perspective rather than responding to short-term fluctuations.
Teng strengthens the importance of focusing on long-term industry fundamentals rather than responding to short-term price fluctuations, allowing market participants to engage and commit to wider ecosystem growth. I concluded by encouraging it.
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