The Pandemic Situation Has Benefited the Crypto Industry

Despite the “Black Thursday” crash in March this year, Binance CEO Changpeng Zhao (CZ) said the panic situation has been good for crypto, especially in terms of segment growth.

The comment came during an interview with Fortune hosts Jeff Roberts and Jen Wieczner. During the interview, CZ shared his opinion on several issues, including central bank digital currencies, the BitMEX saga, and regulation.

But most intriguing of all was CZ’s thoughts on how the panic situation has benefited the crypto industry.

Panic Fuelled Market Crash

Late February to early April 2020 was a period of extreme volatility in both the crypto and legacy markets.

During that time, news of the virus spreading to the western world had triggered fear and panic selling in the markets. This resulted in the most significant points drop in the Dow Jones Industrial Average history at the time.

However, this was followed by two further record-breaking drops on March 12 and March 16.

Crypto markets didn’t fare much better. The three weeks from February 24 saw Bitcoin drop a total of 62% from its previous close of $9.9k.

Bitcoin weekly chart

Bitcoin Weekly Chart YTD. Source: BTCUSDT on TradingView.com

Crypto Has Benefitted From The Pandemic

Since then, crypto has bounced back. Moreso, this week, which sees Bitcoin make a new year-to-date high, peaking at $13.2k.

Some analysts attribute this to PayPal joining the crypto bandwagon. CZ has tweeted a list of tokens that make the cut in the initial stages of their rollout plan.

However, in truth, many other factors have been building up to this point, including how the panic…

Read More