Retail is Still Steering the Crypto Price Rally, Says Binance CEO

The industry of digital currency has been experiencing tremendous run in the ongoing year, especially since the past few months where prices have been at their best. There are a majority of industry experts who feel that the reason behind this rally is the demand created by the entry of institutional investors in the space. The CEO of Binance, however, think otherwise. As per Changpeng Zhao (CZ), individual investors are playing a vital role in driving this remarkable price gains.

CZ who heads the world’s biggest crypto exchange by trading volume, stated that they haven’t witnessed faster growth of the institutions. They have observed the improvement in both spaces. Continuing further, CZ said that the current year has not witnessed a considerable increase in the entry of institutions into the crypto industry as yet.

It must be noted that Binance is recording growth in trading from both the retail and institutional investors. But about 60 percent of total trading volume comes from the individual investors, which is the same scenario as the previous year, according to CZ. Also, this is the case while globally leading companies, such as JPMorgan and Facebook, are venturing into the cryptocurrency space with their own coins, which is, in turn, going to make other players consider the space seriously.

CZ also opined that this growth is partly due to increased margin trading availability. Binance had enabled all the traders on its platform to borrow up to 3 times their deposit amount on 11th July. Interestingly enough, the first day saw ten thousand traders signing up for the offer, borrowing funds worth about 15 million dollars.

Bitfinex, another well-known crypto exchange, had also recently let traders borrow amount up to 100 times their deposited money on particular products. As traders had more funds for speculation, the price of the number one crypto Bitcoin has driven up by 36 percent since the start of June.

CZ also went on to say that he thinks most of the people would be utilizing margin trading by the year-end in their capacity. That’s because it is pretty safe to utilize. The trading volume would increase and there would possibly be higher volatility as well, he said.

David Cox

David is a finance graduate and crypto enthusiast. He projects his expertise in subjects like crypto and Blockchain while writing for CryptoNewsZ. Being from Finance background, he efficiently writes Price Analysis. Apart from writing, he actively nurtures hobbies like sports and movies.

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