Bitcoin Recovery May Be Faster This Cycle, Changpeng Zhao Says

Former Binance CEO Changpeng Zhao said the Bitcoin recovery could be faster than in previous cycles, citing a combination of favorable macroeconomic factors under the Trump administration and sustained institutional demand.

"With President Trump... he views the stock market as his benchmark," Zhao said in a recent podcast with ARK Invest's Cathie Wood. "He's going to do everything in his power to improve the stock market. When the stock market does well, crypto will do well."

The discussion also addressed the October 2025 crypto flash crash, a 24-hour period that saw more than $19.5 billion in leveraged positions liquidated after then-President Trump proposed 100% tariffs on Chinese imports. The event sent Bitcoin tumbling from a peak of $125,000 to $101,000 within hours. Wood clarified during the podcast that a software glitch, not Binance itself, was a factor in the market-wide collapse, a statement Zhao welcomed to clear up media misinterpretations.

Zhao argued that improving stock market conditions, coupled with rising geopolitical tensions and growing interest in gold, could accelerate Bitcoin's rebound. Wood added that institutional investors are increasingly viewing corrections as buying opportunities, a trend she said was tied to the traditional four-year cycle.

Flash Crash Blame Cleared

During the podcast, Cathie Wood addressed long-standing theories that blamed the Binance exchange for the severe market crash on October 10-11, 2025. She explained that while a software glitch occurred during the event, it was the broader panic over US-China trade policy that triggered the sell-off, not the actions of the exchange.

"We know there was a software glitch, but Binance did not trigger the flash crash," Wood said. Zhao thanked her for the clarification, noting that her previous comments had been widely circulated and misinterpreted in Chinese media, leading many to blame his former company.

Institutional Flows and Market Outlook

Both Zhao and Wood pointed to institutional money as a key stabilizing force for Bitcoin's future. "Most institutions are long-term holders," Zhao said. "When they get in, they don’t get out within a month. They will hold for multiple years... that’s really going to stabilize the price."

Wood concurred, stating that many institutions had been waiting for a pullback aligned with the asset's typical four-year cycle before increasing their exposure. As Bitcoin's price attempts to reclaim the $80,513 resistance level, traders are watching to see if this wave of institutional capital will provide the necessary momentum for a sustained rally. Key support levels remain at approximately $79,135 and $74,857. Zhao also touched on the threat of quantum computing, expressing confidence that blockchains like Bitcoin and Ethereum can be upgraded with quantum-resistant encryption before the technology becomes a serious danger.

This article is for informational purposes only and does not constitute investment advice.