Bitcoin has surged to a new all-time high, surpassing $118,000, triggering strong reactions from across the cryptocurrency market. The sudden price increase has left traders regretting their hesitation to buy when the asset dropped below $100,000.
Amid the excitement, former Binance CEO Changpeng "CZ" Zhao has spoken out with a message aimed at calming emotions and reinforcing confidence. According to CZ, the current price should not be seen as a peak, as he calls this "still a dip" and urges investors to think long-term and not to be discouraged by recent prices.
Zhao emphasizes that regular corrections are a part of the reality of the Bitcoin market, and sometimes they are more noticeable after market crashes. He warns investors that prices will continue to decline, but suggests that this could still be a good entry point for those looking to accumulate.
In addition to price volatility, CZ also mentioned Bitcoin's scarcity. The limited supply of this asset continues to push its value higher, as there are only 21 million coins in existence worldwide. This contrasts with fiat currency, which is prone to financial inflation due to excessive printing, causing its value to erode over time.
The Surge in Trading Volume Reflects the Growing Participation of the Market
Along with Bitcoin's price surge, trading activity has also increased dramatically. Data shows that in the past 24 hours, trading volume has skyrocketed by over 91%, reaching $118.74 billion. This increase indicates growing market participation as more traders respond to recent price volatility.
Supporting CZ's statement, this strong trading activity shows widespread interest from investors across the market. Despite the high price, many participants continue to buy in, indicating that this is not yet the final peak. His comment that the market is still in a downturn has sparked controversy within the cryptocurrency community, especially among long-term investors.
Investor sentiment is very optimistic, and Zhao believes this has contributed to the positivity. His affirmation reinforces the general view that Bitcoin remains a powerful vehicle for long-term growth. The overall sentiment of both traders and holders is in agreement, as implied in the market sentiment.
As Bitcoin trades at new highs, CZ's message encourages investors to take a broader view. His perspective that the current level is still considered a dip has helped shift focus from missed opportunities to what may happen in the ongoing Bitcoin price cycle.