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Why Is The Market Crashing? Binance’s CZ Chips in on a Few Narratives

Summary:
The market took a beating over the past 24 hours, and certain altcoins performed a lot worse than others. A lot of the worst-performing cryptocurrencies were also named in the lawsuit that the US Securities and Exchange Commission filed against Coinbase. The agency alleges that they are securities. These include Cardano’s ADA, Solana’s SOL, NEAR, Polygon’s MATIC, and so forth. Bitcoin is down 3.4%, while Ethereum – 5.7%. Even though both of them decreased, it’s nowhere near the 20% decline that the above altcoins are charting. Now, CZ – Binance’s CEO – chips in on some of the ongoing narratives. Changpeng Zhao, the CEO of Binance, chipped in on why the market is crashing. He outlined that “no one really knows” while also explaining that “there are many sellers and buyers

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The market took a beating over the past 24 hours, and certain altcoins performed a lot worse than others.

A lot of the worst-performing cryptocurrencies were also named in the lawsuit that the US Securities and Exchange Commission filed against Coinbase. The agency alleges that they are securities. These include Cardano’s ADA, Solana’s SOL, NEAR, Polygon’s MATIC, and so forth.

Bitcoin is down 3.4%, while Ethereum – 5.7%. Even though both of them decreased, it’s nowhere near the 20% decline that the above altcoins are charting.

Now, CZ – Binance’s CEO – chips in on some of the ongoing narratives.

  • Changpeng Zhao, the CEO of Binance, chipped in on why the market is crashing. He outlined that “no one really knows” while also explaining that “there are many sellers and buyers in a market, everyone may have their own reasons.”
  • However, he also touched on a few ongoing narratives, sharing his thoughts on the matter.
  • CZ said that there’s a false narrative of Binance converting its holdings to fiat.
  • Instead, he claimed that the fiat and stablecoin reserves of Binance decreased – they are the ones used to pay for short-term salaries or expenses.
  • He also said that the crypto reserves of the exchange increased throughout the past months, weeks, and days.
  • A second narrative that he admitted to having no idea about is the matter of Robinhood and what happened to $1.3 billion worth of alts on the platform.
  • In any case, CZ explained that there are two emotions that anyone needs to manage in any market – greed and fear.

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