‘Extreme fear’ returns to Bitcoin – Binance’s CZ sees a reward, not a warning
Journalist
Posted:
Bitcoin is ending 2025 in ‘excessive concern’ alongside the second-worst This fall efficiency in historical past. The asset has declined by 23% this quarter, second solely to 2018, which noticed a 42% drop.
Nevertheless, in his Christmas message, Binance founder, Changpeng Zhao ‘CZ’, encouraged demoralized merchants and buyers that this was the time to ‘purchase the concern’, not prolong the FUD.
“Guess what, those that purchased early didn’t purchase at ATH, they purchased when there have been concern, uncertainty and doubt.”
Supply: X
Is a BTC reversal probably?
Nicely, previous ‘excessive concern’ ranges have been alternatives, as CZ said. The latest situation was in September 2024, when Bitcoin [BTC] traded at $54K. By the tip of 2024, BTC doubled and surged above $100K.
In Q1 2025, one other ‘excessive concern’ linked to Trump tariff wars supplied a reduced shopping for window. The asset dropped to $77K in Q1, however later rallied to over $126K by October.
Supply: CryptoQuant
So, if historical past repeats itself, this might be one other alternative.
However different analysts imagine BTC might slip decrease and the bearish grip might prolong into Q1 2026. In truth, market commentators reminiscent of Jim Cramer are 100% bearish on BTC.
However his bearish stance has at all times been used as a contrarian wager and a backside sign on the asset.
Supply: Unbias
That stated, the general consensus amongst analysts was almost cut up 50/50 on BTC’s path ahead into 2026.
Miner promoting stress alerts…
Even so, a key correlation date between BTC worth and miner worth and manufacturing price advised {that a} restoration might be probably.
For the unfamiliar, miner worth is the extent that BTC must be for miners to be wholesome, lose it a miner capitulation and sell-off might drag BTC decrease.
However, the manufacturing price refers back to the common price wanted to provide 1 BTC, which covers energy, mining rigs and different computational sources, amongst others.
Supply: X
Previously, BTC’s bear market drawdowns didn’t overstay beneath these ranges, particularly the production cost, which was at $80K on the time of writing.
In truth, at present, the miners have been holding off any sell-off, as illustrated by the Miners’ Place Index (MPI).
Supply: CryptoQuant
This might enable restoration to proceed if ETF demand resumes. However it stays to be seen whether or not the U.S tax season in Q1 2026 and different macro updates will cap the rebound.
Last Ideas
- Previous ‘excessive concern’ ranges have been outstanding BTC shopping for alternatives, and CZ imagine the development will proceed.
- Mining sector dynamics advised BTC had the possibility to get better if macro improves and bearish sentiment reverts.
