On Wednesday (May 31) in the Asian market, Bitcoin fell sharply in the short term and almost broke through $27,000. After the US debt ceiling agreement cleared key obstacles, the dollar was supported to suppress safe-haven gold and Bitcoin, which still showed that the crypto market lacked liquidity. Binance founder Zhao Changpeng turned around and said that his view on the Bitcoin bull market might be wrong, emphasizing that the turning point of the next cycle is unclear.
The debt ceiling agreement reached by the White House and the Republican leadership of the House of Representatives cleared a key early hurdle for the full House of Representatives to vote on Wednesday evening. The House Rules Committee passed the bill to suspend the debt ceiling 7 to 6, and the bill will be sent to the U.S. House of Representatives for a full vote on May 31. If the House of Representatives votes to pass, it will go to the Senate for deliberation.
Regarding the current state of the cryptocurrency industry, although Zhao Changpeng previously made it clear that the market is recovering from the bear market in 2022, he emphasized that investors have "mixed" emotions because no one knows what will drive "explosive growth" in the future.
“What will drive the next cycle? Everyone is looking for it now, but no one is sure, and this may be why many people are pouring into meme coins, but at least this situation shows that at least there is money in the market, just waiting to be deployed.”
Zhao Changpeng specifically stated that his view on positive market trends may be wrong, and that people who invest in a bull market should only invest what they feel they can afford to lose, and should not seek over-hyped investments. Finally, Zhao Changpeng revealed that he failed when he first invested in stocks and cryptocurrencies and "learned this lesson the hard way."
There have been many controversies surrounding Binance in the crypto market recently, including reports by Forbes, the Financial Times and Reuters on its alleged misuse of funds. For this reason, Zhao Changpeng made a special statement. He believes that Western mainstream news tends to report negatively on cryptocurrencies, and Binance is prone to FUD (Fear, Uncertainty, Doubt) sentiment due to its large scale.
Zhao further explained: “If you write a negative article about a small exchange, no one will care, but if you put Binance’s name in the headline, hopefully it’s negative, people will click more.”
In addition, Zhao Changpeng also said that his "race" became the target of attack by Western media. He said that although he was born in China, he is a Canadian citizen. Although Binance itself was founded in China, it no longer operates locally due to regulatory requirements, and Chinese employees have been relocated.
Zhao Changpeng said that despite the widespread FUD in the crypto market, Binance aims to be "as transparent as possible" and also provides a reserve proof report. However, Zhao Changpeng admitted that transparency "has limits" and that if Binance discloses all wallet addresses, it will expose supplier and partner information, thereby compromising privacy and security and affecting competition.
In terms of regulation, Zhao Changpeng mentioned that Binance has been actively participating in global regulation, but due to its large scale, regulators will largely "put it under the microscope." In terms of regulation, although the crypto industry is increasingly cooperating with regulators, crypto companies such as Coinbase and Kraken are cooperating with regulators, but their competitiveness is becoming weaker and weaker.
Zhao Changpeng further stated that the crypto regulations currently being implemented in the Middle East and Europe are promising. He also previously revealed that Binance’s business in the Middle East and North Africa (MENA) region is growing.
In addition, Binance once considered acquiring a bank, but found that it needed to comply with local regulations extensively, and that banks were costly and risky, and often not very profitable.
Bitcoin Technology Outlook
FXStreet analyst Akash Girimath said that Bitcoin price seems ready to trigger the PO3 setup. But for the pattern to produce a bearish trend, Bitcoin needs to turn the $27,514 support level into resistance.
If this confirmation fails to arrive, the probability of a rebound is high, especially considering that the Relative Strength Index has recently flipped above the moving average and the Awesome Oscillator is about to do the same to the zero line. Both momentum indicators suggest a rise in bulls, which could trigger a rebound from the $27,514 support level, targeting buy-stop liquidity above the swing highs formed on April 26 and May 6.
In this case, investors can expect Bitcoin price to reach the psychological level of $30,000.
Regardless of the predictions, Bitcoin price will signal where it is headed next. A bearish outlook will kick in if the $27,514 support level is breached. In this case, the PO3 setup could prompt sell stop liquidity above the $25,296 level.
