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Binance Founder CZ Champions Contrarian Bitcoin Strategy: Buy During FUD, Not at Peaks

Binance Founder CZ Champions Contrarian Bitcoin Strategy: Buy During FUD, Not at Peaks

Published:
2025-12-25 12:55:17
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In a recent social media commentary, Binance founder Changpeng 'CZ' Zhao has reiterated a core tenet of successful cryptocurrency investing: the optimal time to accumulate Bitcoin is during periods of market fear, not at euphoric highs. Analyzing historical patterns, CZ observed that the foundational wealth in Bitcoin was built by early adopters who purchased amidst 'Fear, Uncertainty, and Doubt' (FUD), a stark contrast to the crowd behavior of buying during bullish manias. His insights come at a pivotal moment as broader crypto market sentiment, as tracked by indices like the Crypto Fear & Greed Index, shows tentative signs of recovery from 'Extreme Fear' towards a more neutral stance. This shift suggests that the prolonged phase of capitulation and negative news flow may be transitioning, potentially creating the very conditions CZ describes as accumulation zones for disciplined investors. The crypto community's widespread endorsement of this view underscores a growing maturity, recognizing that sustainable gains are often forged against prevailing market emotions. For investors on platforms like Binance, this philosophy translates to a strategic framework that values fundamental conviction over short-term price momentum. As 2025 draws to a close, CZ's reminder serves as a timely guidepost, advocating for a long-term perspective focused on asset fundamentals and network adoption rather than reactive trading based on price peaks. This contrarian approach, championed by one of the industry's most influential figures, reinforces the importance of psychological discipline in navigating the volatile yet high-potential digital asset landscape.

CZ Advocates Buying Bitcoin During FUD Periods, Not Market Highs

Binance founder Changpeng Zhao (CZ) argues that Bitcoin investors historically accumulate during fear-driven market conditions rather than at all-time highs. His recent social media post emphasized that early adopters "bought when there was fear, uncertainty, and doubt"—a strategy now gaining traction as crypto sentiment inches from "Extreme Fear" toward cautious neutrality.

The crypto community largely endorsed this contrarian approach. One trader suggested institutions are quietly positioning for a 2026 bull run, while another noted the psychological toll of buying during market turmoil: "The price of being early isn’t just capital, it’s the stomach to click buy when the timeline is burning." Australian analytics firm RWAlytics corroborated the pattern, observing that most tradable assets follow similar accumulation cycles.

Bitcoin Flash Crash on Binance USD1 Pair Highlights Thin Liquidity Risks

Bitcoin briefly plunged to $24,111 on Binance's BTC/USD1 pair before rebounding to $87,000 within seconds—a volatility spike attributed to thin order book depth during off-peak trading hours. The USD1 stablecoin, backed by the TRUMP family-linked World Liberty Financial, saw isolated impact without broader market repercussions.

Such 'flash wicks' occur when algorithmic trades or large orders sweep through illiquid markets. Analysts note these events underscore the dangers of excessive leverage in crypto's current geopolitical climate. Nic Puckrin of Coin Bureau observed: 'Many spot investors find themselves back where they started—these are liquidity ghosts, not real price movements.'

The incident follows a pattern of exchange-specific anomalies while BTC/USDT remains stable. Market makers pulling back during low-volume periods create fertile ground for artificial breakouts that vanish as quickly as they appear.

CZ's Bitcoin Buying Advice Highlights Opportunity in Market Fear

Binance founder Changpeng Zhao (CZ) has underscored a timeless crypto investment principle: fear creates buying opportunities. His Christmas remarks resonated as bitcoin struggles below $100,000 amid palpable market anxiety. The Fear and Greed Index sits at 28, barely recovering from extreme fear levels of 15 earlier this month.

Bitcoin's current $87,390 price reflects a 30% drop from its October 2025 all-time high of $126,198. Trading volumes remain subdued during the holiday season, with the $1.7 trillion market cap masking underlying investor hesitation. CZ's counsel echoes the wisdom of early BTC adopters who accumulated during periods of maximum doubt rather than at peaks.

The market's risk-off sentiment manifests in capital rotation toward traditional SAFE havens. Yet history suggests such fear-driven environments have consistently preceded Bitcoin's most explosive rallies. As CZ observed, 'They bought when the market was full of fear, uncertainty, and doubt' - a strategy that transformed skeptics into millionaires during previous cycles.

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