PANews, June 20 – Binance founder CZ recently said in an interview with Galaxy that Bitcoin has pulled back roughly 50% from its last all-time high of around $125,000. CZ noted that this is much better than the massive 80% drawdowns often seen in previous cycles. Compared with four years ago (the Luna collapse in 2022 and the bottom of around $16,000 touched when FTX went bankrupt in November of the same year), the current price is still about 4 to 5 times higher.
The biggest difference from four years ago is the U.S. government’s dramatic U-turn, shifting from waging a “war” on crypto to supporting it and taking the lead globally in establishing a regulatory framework, prompting other countries to follow suit. In addition, institutional participation is unprecedented (e.g., BlackRock, ETF listings). Because the previous SEC cracked down on projects, capital poured into Memecoins, but now developers are returning to the U.S. in large numbers, and the industry is welcoming more real-world applications (such as stablecoin adoption, real-world assets (RWA), and buying pre-market tokens for SpaceX on platforms like Binance).
CZ believes that previous all-time highs (such as $60,000) will become future bottom support levels. Those who previously bought at $60,000, after experiencing the price rising to $120,000 and then falling back to $60,000, often choose to add to their positions rather than cut losses. Moreover, no platform or lending company has collapsed in the past six months, indicating that the industry has made progress in controlling leverage risk. Although there is some circular lending in a small number of high-yield stablecoins, it is extremely small relative to the industry’s current size, and there is no dangerous leverage in the system that could trigger systemic bankruptcies.
Regarding YZI Labs’ investment direction, CZ said the capital allocation is roughly divided into 70% crypto, 20% AI, and 10% biotech. The core philosophy is to invest in projects that have a profound impact on human civilization, even if they may be financially unprofitable.
