Changpeng Zhao – Chief Executive Officer of Binance – believes that bitcoin is less volatile than many stocks of tech giants, including Tesla and Apple. He also said the exchange will “have good news to share” on its confrontation with global regulators.
“Many tech stocks are more volatile than BTC”
In a recent interview with the Financial Times, Changpeng Zhao expressed his opinion that over the past two years, the price of the major cryptocurrency has been “more stable” than that of shares of technology companies, such as Tesla d ‘Elon Musk and even Apple:
“If you look at the last two years, if you look at the tech stock price versus the bitcoin price, many of the tech stocks are more volatile than bitcoin. If you look at the data, bitcoin’s more stable than Tesla, bitcoin’s more stable than Apple.”
It should be noted that the Tesla stock price has experienced significant fluctuations over the past few years. When it started rallying in early 2020, a single stock was worth around $90. In November 2021, TSLA hit an all-time high of $1243. However, over the next two months it lost ground, plunging below $800 at one point. Currently, it is trading at around $930.
Apple’s share volatility, on the other hand, was not that considerable, and that could be explained by the fact that the company settled on the market nearly 50 years ago. While many firms were trying to cope at the beginning of the COVID-19 pandemic, AAPL’s shares were heading north almost constantly. In January this year, the company reached an ATH at nearly $183. Nonetheless, it is currently 13% below its peak, trading at approximately $160.
That said, many would argue that bitcoin price is much more volatile, as it frequently sees double-digit swings back and forth.
It is also a relatively new asset, and those typically experience high price fluctuations in their earlier days. Google and Amazon also saw massive volatility at the beginning but now stand among the biggest and most stable corporations in terms of stock price.
Binance and Regulators
The world’s largest crypto platform has received regulatory reactions from several watchdogs over the past few months. The FCA of the UK, the EU and the FSCA of South Africa are some examples.
In November last year, CZ said Binance would change its structure to fix its issues with regulators. He vowed to turn the organization into a licensed financial institution with centralized headquarters.
In his latest appearance, the executive remained optimistic about future collaboration between Binance and global watchdogs. He recalled that the American arm of the exchange is authorized to operate in 45 of the American states, while “good news” concerning the establishment in other countries is to come:
“We have 45 state licenses in the US. In other places, including the G7 countries, we’re making very good progress and I think we’ll have good news to share in the… coming weeks.”
