Binance founder CZ says market pullbacks are natural in free markets

Former Binance CEO Changpeng Zhao (CZ) has addressed the ongoing market meltdown, telling investors that dips and market corrections are normal in free markets such as the crypto industry.

Binance founder and former CEO Changpeng Zhao (CZ) has commented on the bearish market sentiment witnessed in the crypto industry. CZ reminded investors that market dips and corrections are part of free markets.

CZ cautions stressed investors to reduce their crypto positions 

Dips are a part of free markets. 🤷‍♂️

Not financial advice.

If you are stressed about it, you probably should reduce your investment size. (That is, if you view crypto as an investment.)

For me, it's a worldview shift. I exited the old world 11 years ago. https://t.co/5zzRAMB4YC

— CZ 🔶 BNB (@cz_binance) February 28, 2025

Although he categorically stated that he wasn’t giving financial advice, he urged investors who view crypto as an investment vehicle to reduce their positions in digital assets if they feel stressed and overwhelmed about the existing market conditions. He explained that he views crypto as a worldview shift and that he exited the world eleven years ago.

CZ was replying to a question from one of his followers who was seeking words to heal the X crypto timeline as the crypto market continues to display tough conditions for both traders and investors. The follower asked what the Binance founder had to say about the current market condition.

The crypto market has been on a sharp decline in recent weeks following uncertainties revolving around economic policies under President Trump’s administration. Top crypto projects have shed nearly all the gains they had recorded after Donald Trump won the 2024 presidential elections. 

Trump’s victory sparked a wave of excitement, causing both retail and institutional investors to join the crypto bandwagon. Trump had publicly endorsed the crypto industry, promising several regulatory developments to foster the industry’s growth. 

Trump has already made a few steps toward promoting the industry. He appointed pro-crypto candidates such as Howard Lutnick and David Sacks, who now hold senior government positions, to help enforce pro-crypto-friendly regulations. Trump also signed an executive order involving a review of establishing a digital asset reserve for the U.S. Treasury. 

Bitcoin tumbles by 26% from its ATH price

Despite the developments, the crypto market continues to exhibit a bearish sentiment. Bitcoin, the world’s largest crypto asset by market capitalization, is down 26% from its all-time high price of $109,114 registered on January 20th. The crypto asset retails at $80,635 at the time of this publication.

Trump launched his memecoin days before his inauguration called OFFICIAL TRUMP. According to CoinMarketCap data, the memecoin is down 84% from a January peak and currently retails at $11.

Crypto prices are also facing headwinds from more hawkish monetary policy and Trump’s threat of tariffs. The market recently plunged after Trump confirmed tariffs on Mexico and Canada. 

U.S. spot Bitcoin and Ethereum ETFs have also witnessed massive outflows in the last few days. Blockchain analysis platform Onchain Lens reported that BlackRock’s Bitcoin investment firm iShares Bitcoin Trust ETF (IBIT) deposited 5,100 $BTC worth $441 million and 30,280 $ETH worth $71.85 million on the full-service prime institutional brokerage platform.

The transactions caused discussions on whether the Fund was selling the digital assets, managing liquidity, or executing a strategic shift.

Spot Bitcoin ETF outflows continue amid bearish market sentiment.

According to data from Sosovalue, IBIT registered outflows worth $189.02 million on 27th February. The figures mirror a continuing trend of outflows from the ETF market. Yesterday, the spot Bitcoin Exchange Traded Funds witnessed outflows worth $275 million, marking an 8-day streak of negative flows. 

The total net assets under ETF management have dropped below the $100 billion mark and currently sits at $94.3 billion at the time of this publication. The figure represents 5.69% of Bitcoin’s market capitalization. 

Long-term crypto advocates have stepped forward to express their opinions on the future of crypto. Besides CZ, the Founder and CEO of Professional Capital Management, Anthony Pompliano, said in an interview that Bitcoin is likely to be 10X after the ongoing correction.

Like CZ, the crypto asset has periodically recorded massive corrections during its bull cycles. Pompliano said he doesn’t have a clear price on Bitcoin’s imminent upsurge. However, he explained his positive outlook based on the asset’s historical performance.

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