Binance CEO Changpeng Zhao commented on Bitcoin (BTC) volatility, saying that the largest cryptocurrency by market cap is likely less volatile than the stock prices of companies of similar size by market cap, such as Apple and Tesla.
Woobull data shows that Bitcoin’s 60-day volatility has been steadily declining since early 2021. However, data from investment research portal AlphaQuery shows that Tesla and Apple share prices still have significantly lower 60-day volatility over the same period.
60-day BTC volatility, courtesy of Woobull Charts
Speaking on Monday during an interview with Bloomberg TV, the Binance CEO stated that cryptocurrency volatility is not much different from the situation in the stock market, adding: “Volatility is everywhere. […] This is not unique to cryptocurrency. “
According to Zhao, profit hunters, who are often not as committed to crypto projects as true believers, are often to blame for volatile prices due to their large number.
“There are always more people with a herd mentality than those who really do serious research.”
“Whenever negative news comes out, they [herd followers] run away, whenever there is positive news, they try to rush and thus cause great instability, ”Zhao said.
The executive’s characterization of cryptocurrency supporters as “die-hard fans who understand and truly love the project” is consistent with his previous remarks about his personal affection for the industry as a whole.
Back in April, Zhao revealed that he holds almost 100% of his fortune in cryptocurrencies.
The cryptocurrency market is experiencing significant gains Monday, with total market capitalization up more than 4.5% in the last 24 hours.
The rise in Ether (ETH), which for the first time in history surpassed the $ 3,000 mark, was the main event of the day, especially among the top 10 tokens in terms of market capitalization.
Bitcoin appears poised to test the $ 60,000 mark for the first time since mid-April, preceding a minor correction below $ 50,000 on April 24.