Amid the ongoing cryptocurrency market crash, Changpeng Zhao (CZ), the Binance founder, recently posted an investment tip on X.
Changpeng Zhao (CZ), the founder of Binance, recently attracted a lot of attention for his investment tip during a cryptocurrency market crash. In a post on X, CZ explained the current market decline and advised traders to scale back their investment portfolios if stressed. Notably, the price of cryptocurrencies is currently under tremendous pressure, as evidenced by the fact that Bitcoin (BTC) fell as low as $78K, while other cryptocurrencies are imitating an even more severe downward trend.
CZ’s X post from February 28 states that traders and investors should lower their “investment size, given one considers crypto as an investment” if they feel anxious about the current decline. “Dips are a part of free markets,” the Binance founder said, justifying the current market meltdown.
Binance Founder Reacts To The Crypto Market Crash
Numerous factors contributed to the current crypto market crash, which saw altcoins plummet by almost 10% and Bitcoin drop to a low of $78K. Notably, tensions from the trade war are exacerbated by Donald Trump‘s new import tariffs, which are heating international markets.
Even the cryptocurrency market saw a sharp decline in value, and traders panicked. According to the most recent Coinglass data, the market saw significant liquidations totaling $950.27 million, raising concerns among traders and investors. Notably, prices were severely impacted by the intraday liquidation of 2,27,576 traders.
Digital Assets Outflows Add To Market Volatility
Additionally, CoinShares‘ head of research, James Butterfill, recently reported that net outflows for Bitcoin and digital asset ETPs this week reached a record-breaking $2.6 billion. However, he added that the selloff craze seems to be abating, giving rise to optimism about the market’s future in line with the Binance founder’s remarks.
On the other hand, it’s significant that a staggering $5.78 billion worth of Ethereum and Bitcoin options are about to expire, increasing market anxiety amid a continuing crash. 59,000 Bitcoin option contracts with a put-call ratio of 0.71 and a notional value of $4.68 billion are expiring today. Additionally, 529,000 Ethereum contracts with a put-call ratio 0.52 are scheduled to expire soon.
Given the statistics above, traders and investors should expect significant volatility.
