CZ envisions a crypto supercycle driven by liquidity policies

screenshot_gains · 2026-01-27T11:26:36+00:00

Changpeng Zhao, founder of Binance, believes a crypto supercycle is possible due to favorable economic policies. He emphasizes the link between stock market health and crypto performance, suggesting that increased liquidity from traditional markets could drive capital toward digital assets, contingent on various macroeconomic factors.

screenshot_gains

2026-01-27 11:26:36

Abstract generation in progress

The founder and former CEO of Binance, Changpeng Zhao (CZ), believes that a crypto market supercycle remains possible, especially thanks to the economic orientation of the Trump administration. According to him, measures that boost stock market performance could generate spillover effects beneficial to digital assets.

An optimistic stock market context for crypto

CZ highlights a key correlation between the health of the stock market and that of cryptocurrencies. “When stocks are doing well, it’s generally positive for crypto,” he states. This observation reflects the current reality where capital flows from the traditional sector to digital assets remain heavily influenced by investors’ overall risk appetite.

Liquidity as a potential catalyst

The economic policies of the Trump administration, aimed at supporting stock market performance, could create a favorable environment for liquidity spillover. This additional influx of capital, initially directed toward stock markets, might partially flow into cryptocurrencies. Improving market sentiment would then strengthen investors’ appetite for riskier assets, thus accelerating fund transfers into the crypto ecosystem.

An uncertain supercycle outline

If macroeconomic conditions prove favorable and liquidity indeed increases, CZ believes a crypto supercycle could materialize. However, this scenario depends on the convergence of several factors: the effectiveness of economic policies, overall market sentiment, and the crypto markets’ ability to structurally absorb new capital.

LA4,38%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.