Binance CEO denies claims that Bitcoin crash was caused by the coronavirus

The coronavirus outbreak has already impacted the entire global economy in less than two months. The stock market has crashed, and even the crypto market saw a major price drop, with Bitcoin price losing over 50% of its value in a matter of hours, several days ago.

However, according to Binance‘s CEO, Changpeng Zhao, it was not coronavirus fear that has caused the crash of the world’s largest cryptocurrency. In fact, Zhao claims that the global pandemic was nothing but a spark and that the current economic meltdown has a different cause.

Zhao made these claims in a blog post published yesterday, March 20th, where he claims that the global economy is extremely weak, and coronavirus outbreak has just proved it.

Zhao commented on the current situation and compared it to the financial crisis in 2008, stating that there was not a pandemic pausing the entire global economy in 2008. But even with one now, the pandemic is only a trigger, and the economy wouldn’t have crashed so easily if it were as strong as it could have been.

Bitcoin will return

While Bitcoin seemingly crashed soon after the stock market, it appears that the coin is once again decoupling from the traditional markets’ fate, as the last few days have started bringing recovery. At one point, the coin even managed to recover 90% of its former price, before a correction brought it back down.

Despite its volatility, Zhao claims that Bitcoin is not ‘broken,’ unlike the legacy system. He expects that investors will stop hoarding money at some point, and portfolios will start to expand once more. One of the destinations for the currently hoarded money will also be Bitcoin, according to CZ.

He admits that it might take some time for this to happen, but he firmly believes that it will and that it is worth waiting for it.

Meanwhile, the current situation seems to be unraveling exactly as Andreas Antonopoulos predicted several months earlier. He stated that Bitcoin is likely to crash hard once the next financial crisis takes place, as investors exited crashing stocks. However, Antonopoulos also predicted that Bitcoin will recover after a certain period, in which he seems to agree with CZ.

Zhao himself still believes that BTC will become a safe haven in the future if his supply is fixed and that it becomes immune to manipulation. It is still too early for it to fulfill this role, but many agree that this is in the coin’s future.