Market Musing-g
CZ: “If you are stressed about the fall (of bitcoin), reduce your investment”
MIKE
XKI
ARTHUR
CEO
Amid the current uncertainty in the cryptocurrency market, former Binance CEO Changpeng Zhao shared his thoughts. When asked by a user, he explained that these cycles are a natural part of the market and something investors need to get used to.
While this sounds simple — at least on paper — the truth is that for a moderate-income investor, seeing their bitcoin investment plummet can be discouraging. This is something that can only be solved with experience, reflection, and above all, prudence. In this context, Zhao tells his followers that if they cannot cope with what these drops entail, then they should invest less.
The cryptoasset market is going through a difficult time, especially for bitcoin. At the time of writing this article, the main cryptocurrency is trading at USD 80,642 —according to data from CoinMarketCap—, registering a drop of more than 20% in a week. Factors such as the new tariffs imposed by the US and the hacking of the Bybit exchange have affected the sector, generating a climate of risk aversion among investors. As reported by CriptoNoticias, USD 400 million in trading operations have been liquidated in recent days.
Add to this recent comments from experts such as Mike Fay, who predicted that Bitcoin will return to the $72,000 zone, or Arthur Hayes, who sees it hovering around $70,000, and certain investors assume that the discouraging climate will continue for a long time.
However, not all reactions are discouraging. Both CryptoQuant CEO Ki Young Ju and market analyst Willy Woo suggest that a rebound could be in the offing. Ju notes that 30% corrections are common in bull cycles, and that the price of bitcoin often recovers afterwards, as it did in 2021. Woo, based on the “urgency model,” sees a buildup of buy orders following an extreme sell-off, a pattern that has historically preceded price rebounds.
No matter what happens, it is crucial to maintain a long-term perspective. Instead of acting impulsively, investors should take the time to research, reflect and adjust their strategies according to their risk tolerance and goals. Remember that fear is never a good advisor.