Binance founder Changpeng Zhao (CZ) recently garnered significant attention with his investment tip amid a crypto market crash. CZ posted on X, rationalizing the current market dip whilst urging traders to reduce investment portfolios if they are stressed. Notably, cryptocurrency prices currently face immense heat, as seen by Bitcoin (BTC) hitting a $78K low whilst altcoins are mimicking an even harder slumping action.
Binance CZ Calls On Investment Portfolio Reduction: What’s The Scoop?
According to CZ’s X post on February 28, if traders and investors are stressed amid the current dip, they should reduce their ‘investment size, given one considers crypto as an investment.’ The Binance founder stated, “dips are a part of free markets,” further rationalizing the current market crash.
Binance Founder’s Comment Amid Crypto Market Crash
A stockpile of factors appear to be triggering the current crypto market crash, which saw BTC hitting a $78K low whilst altcoins followed, tanking nearly 10%. Notably, Donald Trump’s new import tariffs are triggering trade war tensions, bringing heat to global markets.
As a result, even the crypto market lost alarming value, with market participants panic-selling. Traders and investors continue to reflect concerns as the market recorded massive liquidations worth $950.27 million, per the latest Coinglass data. Notably, 2,27,576 traders were liquidated intraday, bringing severe heat to prices.
Digital Asset Outflows Contribute To Market Volatility
Further, the head of Research at CoinShares, James Butterfill, recently posted that net outflows this week for Bitcoin and digital asset ETPs totaled $2.6 billion, an all-time record. However, he also added that the selloff frenzy appears to be cooling off, glimmering hope towards the market’s future in sync with the Binance founder’s comments.
On the contrary, it’s noteworthy that a whopping $5.78 billion in Bitcoin and Ethereum options are set to expire, adding to market concerns amid an ongoing crash. CoinGape reported that 59,000 Bitcoin option contracts are expiring today with a notional value of $4.68 billion and a put-call ratio of 0.71. Further, 529,000 Ethereum contracts are set to expire shortly ahead with a put-call ratio of 0.52.
Overall, traders and investors brace for considerable volatility in light of the abovementioned statistics.
BTC & Altcoins Price Action Raises Concerns Despite Binance Founder’s Investment Tip
Despite Binance’s founder’s investment tip, traders and investors reflect cautiousness amid alarming price drops. Bitcoin (BTC) price traded at $80,441 as of press time, down 8% intraday.
Ethereum (ETH) price plummeted nearly 10% in the past 24 hours, closing in at $2,135. XRP and Solana prices cracked 7%-9%, exchanging hands at $2.04 and $133.22, respectively. The crypto market lost nearly 7.5% value, as indicated by a waning market cap of $2.66 trillion. Altogether, despite CZ’s optimistic comments, market watchers remain apprehensive amid the current turbulent landscape.
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