Earlier today (May 21), the Binance Co-Founder and CEO Changpeng Zhao (aka “CZ”) CZ weighed in on yesterday’s Bitcoin flash crash.
The always vocal CZ was hitting out at skittish crypto traders who had become spooked by the alleged movement of 40 BTC mined in February 2019:
Feds print a few trillion, nothing happens.
Someone (most likely NOT Satoshi) moves 40 early BTC, market panics.
— CZ Binance 🔶🔶🔶 (@cz_binance) May 20, 2020
CZ, although here making the assumption of causality between the scare and the subsquent 4% drop in the price of Bitcoin, took the time to emphasize that what they should really be worried about is the the Fed’s massive liquidity injections into the US economy.
Indeed, the FED has poured trillions of dollars into keeping U.S. markets, enterprises, and even citizens afloat in the wake of the economic damage wrought by COVID-19 in recent months.
And in the realm of crypto especially, this money printing—perhaps undeservedly so—has ignited fears and predictions of massive inflation and devaluation of fiat currencies like the dollar.
All this has burnished crypto-true-believers’ faith in Bitcoin for its low-inflation characteristics, putting them in the gold-bug camp.
CZ’s comments may ring a bit flat, however, as Bitcoin seems to have responded quite directly—at least anecdotally so—to just this concern. In fact, after a false start and steep dump, Bitcoin seems to have done better than the traditional safe haven asset (gold) in recent weeks.
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