Binance CEO: Exchange Gearing Up for Increased Crypto Trading Volumes – Here's Why Binance CEO Changpeng Zhao. Source: a video screenshot, Entrepreneur ME / YouTube
Binance, the world’s largest crypto exchange, is doing “a lot of preparation” to be ready for increased trading volumes over the coming months, CEO Changpeng Zhao (CZ) has said.
Speaking in an AMA (“ask me anything”) session on Twitter Spaces on Wednesday, CZ said that if history is a guide, trading volumes will rise going forward.
“If we look at historical patterns, we want to be prepared for higher volumes,” the Binance boss said, adding that the exchange is now readying its systems for heightened activity over the next six to 18 months.
According to CZ, Binance has already started to see higher trading volumes compared to the period since November last year when its rival FTX imploded.
The implosion of FTX marked the bottom of the 2022 bear market for Bitcoin, and the period was also characterized by a general lack of interest in crypto and crypto trading.
For now, the boost in both price and trading volumes across the crypto market is probably due to a renewed push to list a spot Bitcoin exchange-traded fund (ETF) in the US by several prominent asset managers.
Among the firms that have filed to list an ETF is BlackRock, the Wall Street firm known as the world’s largest asset manager.
Other companies in the race includes Fidelity, WisdomTree, VanEck and Invesco, with each of them hoping to be the first company to bring to market an ETF backed by spot Bitcoin rather than Bitcoin futures.
Additionally, another factor that is now starting to boost sentiment and bring in more trading volume is the upcoming Bitcoin halving, which has been predicted to send Bitcoin to $50,000 and beyond.
The next Bitcoin halving is expected to occur in April 2024, when the reward paid out for mining a new block on the blockchain will be reduced from 6.25 BTC to 3.125 BTC.
‘I’m always bullish’
Asked in the AMA session whether any of these factors make him more bullish, CZ responded “I’m always bullish.”
He went on to explain that this was the case both at the peak of the bull market and when crypto turned to a bear market.
However, he also stressed that “no one can predict the future,” and pointed out that historical patterns do not necessarily repeat in the future.
“Fundamentally, I don’t think anybody knows how the market is going to turn out,” CZ said.