CZ Blames Crypto Sell-Off on Multiple Factors, Not One Trigger

Changpeng Zhao, the founder of Binance, said the current pressure on Bitcoin and other digital assets comes from a blend of influences rather than any single trigger. He did not specify which factors are at play or offer a timeline for recovery.

Zhao's assessment, shared in a social media post, carries weight among retail traders because of Binance's dominant position in spot and derivatives markets. Even after stepping away from day-to-day management and facing legal issues, CZ remains a figure whose market reads are widely circulated.

The post comes as crypto markets have struggled for months. Zhao acknowledged the pain could deepen before it ends. He said the best strategy is to survive the drawdown and avoid forced liquidations.

Some analysts argue the sell-off reflects structural problems in the industry, including regulatory uncertainty and stalled stablecoin legislation. Zhao pushed back on that view indirectly, saying similar predictions of decline were made in 2018 and 2022, both of which preceded multi-year rallies.

Zhao offered no price target. He said the current downturn follows a pattern seen in prior cycles: a sharp rally, overleveraged positioning, then a violent unwind. In his view, the shakeout clears weak hands and sets the stage for the next leg higher whenever it arrives.