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Bitcoin plunges, panic spreads—former Binance CEO Changpeng Zhao (CZ) says only those who master risk and resilience will thrive in the relentless crypto market.
Bitcoin’s Freefall: CZ’s Tough-Love Advice for Investors Who Can’t Handle the Heat
Market volatility has once again sparked discussions among crypto investors, with Changpeng Zhao (CZ), the former CEO of crypto exchange Binance, offering his perspective. On Feb. 28, he addressed concerns about market dips on social media platform X, emphasizing that fluctuations are a natural aspect of free markets. He advised investors who feel anxious about price swings to reconsider their investment size, stating:
Dips are a part of free markets … If you are stressed about it, you probably should reduce your investment size. (That is, if you view crypto as an investment.)
While clarifying that his remarks were not financial advice, Zhao reflected on his own shift in perspective, adding: “For me, it’s a worldview shift. I exited the old world 11 years ago.”
With bitcoin, Binance’s BNB, and other cryptocurrencies experiencing sharp price swings, Zhao emphasizes the importance of a balanced approach and personal responsibility for long-term success. The market recently saw a significant downturn, with BTC dropping below $80,000 amid renewed tariff threats from former President Donald Trump, who proposed 25% tariffs on Mexico and Canada. Investor concerns over these policies triggered a broader sell-off in risk assets. Confidence was further shaken by a $1.5 billion hack of the crypto exchange Bybit, which particularly impacted Ethereum.
On March 1, CZ addressed investor concerns further, reinforcing his perspective on risk management. He wrote on X:
If you got shaken out during the dip, reduce your size to a level you can handle. Mental stability beats all market volatility.
Zhao emphasized the need for emotional resilience in navigating crypto market volatility. His message resonates with both new and experienced investors, highlighting the importance of strategic adjustments and personal risk assessment. He underscores that market turbulence demands not only financial planning but also emotional preparedness.