BINANCE CEO SAYS VOLATILITY IS NOT UNIQUE TO CRYPTO — DATA SHOWS ITS BITCOINS JET FUEL
Volatility. Binance CEO Changpeng Zhao said Bitcoin s volatility is probably less volatile in comparison with some stocks, but data shows Bitcoin is the incontestable winner when adjusting the metricIt's the word that often echoes in discussions about cryptocurrency, painting a picture of unpredictable markets and potential for rapid gains or losses. This crypto blog aims to provide the latest stories and commentary for crypto enthusiasts. Brought to you by Binance, the world's leading blockchain and crypto ecosystem.But is this volatility truly unique to the crypto world? 894K subscribers in the binance community. A place to interact with the community, and discuss all things crypto and Binance!Binance CEO, Changpeng Zhao (CZ) and now Richard Teng, have argued otherwise.They posit that market fluctuations are inherent to various asset classes, including traditional stocks. During an interview with Bloomberg TV on May 3, Binance CEO Changpeng Zhao suggested that Bitcoin (BTC) is probably less volatile than the stock prices of Apple (AAPL) and Tesla (TSLA). Zhao argued that crypto s volatility was not unlike the stock market, adding: that volatility is everywhere and that it is not unique to crypto.In fact, CZ once suggested that Bitcoin (BTC) might even be *less* volatile than the stock prices of giants like Apple (AAPL) and Tesla (TSLA). During an interview with Bloomberg TV on May 3, Binance CEO Changpeng Zhao suggested that Bitcoin (BTC) is probably less volatile than the stock prices of Apple (AAPL) and Tesla (TSLA). Zhao argued that crypto's volatility was not unlike the stock market, adding: that volatility is everywhere and that it is not unique to crypto.While this might sound surprising to those accustomed to the often-wild swings in the crypto market, a closer look at the data reveals a more nuanced perspective. In this piece, Binance CEO Richard Teng discusses the evolving perceptions of cryptocurrency and argues that no matter what these perceptions are, we are still in the early stages unlocking digital assets massive potential.Bitcoin's volatility, while undeniable, is often the very fuel that drives its returns, making it both a risk and an opportunity. Cryptocurrency coins listed by market capitalization. Today's prices for the top 100 crypto coins including BTC, ETH, XRP, BCH. LTC and many more.This article will delve into the reality of Bitcoin's volatility, compare it to traditional markets, and explore how investors can navigate this dynamic landscape.
Understanding Cryptocurrency Volatility
Before we dissect the claims of Binance's CEOs, let's define what we mean by volatility. The chart was accompanied by the statement Volatility is vitality, emphasizing Saylor's perspective that Bitcoin's volatility is a strength rather than a weakness. Bitcoin's volatility is a feature, not a bug, Saylor added, challenging the conventional view that volatility undermines the cryptocurrency's value.In financial terms, volatility refers to the degree of variation in a trading price series over time, usually measured by standard deviation.A higher standard deviation indicates greater price swings, while a lower one suggests more stability. This extreme volatility reflected Bitcoin s status as an unproven digital asset with minimal institutional backing. Small trading volumes meant that even modest buy or sell orders could triggerIn the context of cryptocurrencies, volatility often stems from a multitude of factors:
- Market Sentiment: News events, regulatory announcements, and social media trends can heavily influence investor sentiment, leading to rapid buying or selling pressure.
- Liquidity: Compared to established markets like stocks or bonds, the cryptocurrency market can have lower liquidity, particularly for smaller altcoins.This means that even relatively small trades can have a significant impact on prices.
- Speculation: The nascent nature of the crypto market attracts a significant amount of speculation.Many investors are driven by the potential for quick profits, which can exacerbate price swings.
- Regulatory Uncertainty: The regulatory landscape for cryptocurrencies is still evolving in many jurisdictions.Uncertainty surrounding future regulations can create volatility as investors anticipate potential impacts on the market.
- Macroeconomic Factors: Like traditional assets, cryptocurrencies can also be affected by macroeconomic events such as inflation, interest rate changes, and geopolitical tensions.
Binance CEO's Perspective on Bitcoin Volatility
Changpeng Zhao (CZ), during his tenure as Binance CEO, frequently addressed the issue of volatility in the crypto market.His core argument was that volatility is not unique to crypto and exists in all financial markets. Crypto trading experience elevated. Buy, sell, trade BTC, altcoins NFTs. Get access to the spot and futures market or stake your coins securely.Richard Teng, the current CEO, echoes this sentiment, emphasizing that fluctuations are inherent to even traditional assets like stocks.
CZ highlighted that when adjusting for returns, Bitcoin's volatility might appear less extreme than it seems at first glance. Latest News in the Digital Currency World. Buy Sell Bitcoin and other Crypto with our affiliate Partners.While the price swings might be larger in absolute terms compared to, say, a stable blue-chip stock, the potential for significant returns in Bitcoin can compensate for the increased risk. Binance CEO Changpeng Zhao said Bitcoin s volatility is probably less volatile in comparison with some stocks, but data shows Bitcoin is the incontestable winner when adjusting the metric based on returns.It's a matter of risk-adjusted return.
Teng's stance reinforces this by framing recent market dips as ""tactical retreats"" rather than structural collapses. It s All Good, Says Binance CEO Binance CEO Richard Teng downplayed the recent crash, which resulted in an 8% drop in the total cryptocurrency market capitalisation. He described it as a tactical retreat rather than a sign of structural weakness.He points to the resilience of crypto markets over time, highlighting their tendency to bounce back strongly after periods of volatility, driven by strong fundamentals and growing investor interest, particularly in Bitcoin ETFs.
Comparing Bitcoin Volatility to Traditional Assets
To assess the validity of CZ's claims, let's compare Bitcoin's volatility to that of traditional assets like stocks.While it's difficult to make direct comparisons due to the different characteristics of these markets, some data points are worth considering:
- Historical Volatility: Historically, Bitcoin has exhibited significantly higher volatility than major stock indices like the S&P 500 or the Nasdaq 100. Explore the dynamic world of cryptocurrencies with Crypto Bubbles, an interactive visualization tool presenting the cryptocurrency market in a customizable bubble chart. Dive into the latest market trends and gain valuable insights effortlessly. Crypto Bubbles serves as an independent data aggregator, offering a comprehensive view of the crypto landscape. Accessible for free, without ads, andDaily price swings of 5% or more are not uncommon for Bitcoin, while such movements are rare for established stock indices.
- Individual Stocks: However, when comparing Bitcoin to individual stocks, especially growth stocks like Tesla or highly speculative stocks, the picture becomes more complex.Some individual stocks can experience periods of extreme volatility exceeding even that of Bitcoin.
- Risk-Adjusted Returns: As CZ mentioned, the key is to consider risk-adjusted returns. Zhao argued that crypto's volatility was not unlike the stock market, adding: that volatility is everywhere and that it is not unique to crypto. However, those involved in cryptocurrency trading probably know that cryptocurrency prices fluctuate a lot more than listed trillion-dollar companies.While Bitcoin's volatility is higher, its potential for returns is also significantly greater. Binance founder Chaopeng Zhang said herd mentality is one of the reasons why bitcoin's price is volatile in an interview with Bloomberg. But he said this volatility is nothing new toTherefore, investors need to weigh the potential rewards against the increased risk.
Ultimately, whether Bitcoin is ""more"" or ""less"" volatile than stocks depends on the specific benchmark used. Teng began by putting the recent market volatility into perspective, noting that fluctuations are not unique to cryptocurrencies. Volatility is not just a crypto problem; even stocks and other financial assets experience it, Teng explained.It's crucial to compare Bitcoin to assets with similar risk profiles rather than making blanket statements.
The ""Jet Fuel"" Analogy: How Volatility Drives Bitcoin's Growth
The phrase ""Bitcoin's jet fuel"" perfectly encapsulates the idea that volatility, while risky, can also be a powerful driver of growth. Binance CEO Richard Teng said the recent 8% decrease in crypto s total market cap represents a tactical retreat rather than a structural trend reversal. In a Feb. 25 social media post, Teng noted that historical data suggests that crypto markets, like traditional financial assets, react to macroeconomic shifts but demonstrate strong resilience over time.Here's how:
- Opportunity for Profit: Volatility creates opportunities for traders and investors to profit from price swings.Skilled traders can capitalize on short-term fluctuations through strategies like day trading and swing trading.
- Increased Awareness: Volatile periods often attract media attention and public interest, which can lead to increased awareness and adoption of Bitcoin.
- Market Correction: Volatility can act as a cleansing mechanism, weeding out weak hands and overleveraged positions.This can lead to a healthier and more sustainable market in the long run.
- Innovation and Development: Volatility forces companies and developers to innovate and adapt to changing market conditions.This can lead to the development of new technologies and applications that benefit the entire ecosystem.
Michael Saylor, a prominent Bitcoin advocate, has famously argued that Bitcoin's volatility is a ""feature, not a bug."" He believes that the volatility is a necessary part of Bitcoin's journey towards becoming a global reserve asset.
Navigating the Volatile Crypto Market: Practical Strategies
While volatility can be a source of opportunity, it also poses significant risks. Binance CEO Changpeng Zhao said Bitcoin s volatility is probably less volatile in comparison to some stocks, but data shows Bitcoin is the incontestable winner when adjusting the metric based on returns. During an interview with Bloomberg TV on May 3, Binance CEO Changpeng Zhao suggested that Bitcoin (BTC) is probably less volatile than the stock MoreHere are some practical strategies for navigating the volatile crypto market:
- Do Your Research: Before investing in any cryptocurrency, conduct thorough research to understand its underlying technology, use case, and potential risks. Binance s journey under Teng s leadership has not been without its challenges. In November 2025, Binance and former CEO Changpeng Zhao (CZ) reached a plea agreement with the U.S. Department of Justice (DOJ) following allegations of violations of the Bank Secrecy Act (BSA) and deficiencies in anti-money laundering (AML) practices.Don't rely solely on hype or social media trends.
- Diversify Your Portfolio: Don't put all your eggs in one basket.Diversify your crypto portfolio across different cryptocurrencies and asset classes to reduce risk.
- Use Stop-Loss Orders: Implement stop-loss orders to automatically sell your assets if the price falls below a certain level. However, as shown in a recent comment by Binance exchange founder, Changpeng Zhao, most of the time people are clueless about what volatility means. This is not the first time that CZ has madeThis can help limit your potential losses.
- Avoid Leverage: Trading with leverage can magnify both your profits and your losses. Binance CEO Changpeng Zhao said Bitcoin s volatility is probably less volatile in comparison with some stocks, but data shows Bitcoin is the incontestable winner when adjusting theAvoid using excessive leverage, especially if you are new to crypto trading.
- Stay Informed: Stay up-to-date on the latest news and developments in the crypto market.Follow reputable news sources and analysts to gain insights into market trends.
- Consider Dollar-Cost Averaging (DCA): DCA involves investing a fixed amount of money at regular intervals, regardless of the price. With low fees and over 350 cryptocurrencies to trade, Binance is the preferred exchange to trade Bitcoin, Altcoins, and other virtual assets. With Binance users can: Trade hundreds of cryptocurrencies on Spot, Margin, and Futures markets. Buy and sell cryptocurrencies with Binance P2P. Earn interest on your crypto with Binance Earn.This can help mitigate the impact of volatility by averaging out your purchase price over time.
- Hodl for the Long Term: If you believe in the long-term potential of Bitcoin or other cryptocurrencies, consider adopting a ""hodl"" strategy, which involves holding your assets through market ups and downs.
- Manage Your Emotions: Volatility can be emotionally challenging.Avoid making impulsive decisions based on fear or greed. Here s how options traders would play the very high volatility that Binance founder Changpeng Zhao suggested will impact the crypto market over the next few months .Stick to your investment plan and stay disciplined.
Addressing Common Concerns and Misconceptions
Is Bitcoin a Safe Investment?
Whether Bitcoin is a ""safe"" investment is subjective and depends on your risk tolerance and investment goals. cointelegraph.com: Binance CEO Changpeng Zhao said Bitcoin s volatility is probably less volatile in comparison to some stocks, but data shows Bitcoin is the incontestable winner when adjusting the metric based on returns.Bitcoin carries inherent risks due to its volatility and the evolving regulatory landscape. Bitcoin Options Trading Data, including Open Interest, Trading Volume, Put Call Ratio, Taker Flow, Max Pain, Settlement price history big data of crypto Options contracts from BinanceHowever, it also offers the potential for significant returns.It is crucial to assess your own financial situation and risk appetite before investing in Bitcoin.
Is Crypto a Bubble?
The question of whether crypto is a bubble is a recurring one.While some cryptocurrencies may be overvalued, the underlying technology and use cases of blockchain have undeniable potential. View the full list of all active cryptocurrencies.It's important to distinguish between speculative bubbles and genuine innovation. The Securities and Exchange Commission (SEC) is dropping its case against crypto exchange Binance, as the agency continues to pull back on enforcement against the digital asset industry under PresiNot all cryptocurrencies are created equal, and some may ultimately fail.
What is the Crypto Fear and Greed Index and How Should I Use It?
The Crypto Fear and Greed Index is a tool used to gauge market sentiment. To trade cryptocurrency, follow these general steps: Choose a cryptocurrency exchange that supports trading. A popular option is the Crypto.com Exchange.; Create an account on the chosen platform and perform ID verification, known as KYC ( Know Your Customer ).It ranges from 0 to 100, with 0 indicating ""extreme fear"" and 100 indicating ""extreme greed."" While the index can be a useful indicator, it should not be used in isolation.It's important to consider other factors, such as fundamental analysis and technical analysis, when making investment decisions. Zhao argued that crypto s volatility was not unlike the stock market, adding: that volatility is everywhere and that it is not unique to crypto. However, those involved in cryptocurrency trading probably know that cryptocurrency prices fluctuate a lot more than listed trillion-dollar companies.A low score, indicating extreme fear, can sometimes present a buying opportunity for long-term investors, while a high score, indicating extreme greed, may signal a potential market correction.
The Future of Bitcoin and Volatility
As the cryptocurrency market matures, it is likely that volatility will decrease over time.Increased institutional adoption, greater regulatory clarity, and improved market infrastructure will all contribute to a more stable market environment.However, Bitcoin will likely remain more volatile than traditional assets for the foreseeable future.This volatility will continue to present both risks and opportunities for investors.
Richard Teng's focus on engaging with the US government and adapting to evolving crypto policies suggests a proactive approach to navigating the regulatory landscape, potentially reducing regulatory-related volatility.The increasing interest in Bitcoin ETFs also points towards greater institutional involvement, which could further stabilize the market.
Conclusion: Embracing the Volatility
Bitcoin's volatility is a double-edged sword.It presents significant risks but also creates opportunities for profit and drives market growth.While Binance CEOs like Changpeng Zhao and Richard Teng may argue that volatility is not unique to crypto, the reality is that Bitcoin exhibits a higher degree of volatility than many traditional assets. Explore the latest cryptocurrency market volatility with our real-time data. Stay up-to-date on the fluctuating crypto prices and make informed decisions.However, this volatility is not necessarily a negative thing. With low fees and over 400 cryptocurrencies to trade, Binance is the preferred exchange to trade Bitcoin, Altcoins, and other virtual assets. With Binance users can: Trade hundreds of cryptocurrencies on Spot, Margin, and Futures markets. Buy and sell cryptocurrencies with Binance P2P. Earn interest on your crypto with Binance Earn.It's an inherent characteristic of a nascent and rapidly evolving market. The Cato Institute raises concerns over Fincen's new reporting regulations, signaling a threat to financial privacy. As governments tighten their grip, couldBy understanding the sources of volatility and implementing appropriate risk management strategies, investors can navigate the crypto market successfully and potentially reap the rewards of this dynamic asset class.The key takeaways are:
- Volatility is inherent to the crypto market, particularly Bitcoin.
- It is not necessarily unique to crypto, but often more pronounced compared to traditional assets.
- Volatility can be a driver of growth and create opportunities for profit.
- Risk management is crucial for navigating the volatile crypto market.
- Long-term investing and diversification can help mitigate the impact of volatility.
Ultimately, whether you choose to invest in Bitcoin or other cryptocurrencies depends on your individual circumstances and risk tolerance.But by understanding the nature of volatility, you can make informed decisions and participate in this exciting and transformative market.
Comments