Former Binance CEO Changpeng “CZ” Zhao believes Bitcoin could ultimately reach $1 million despite Cryptocurrency’s sharp decline.
With Bitcoin falling below $87,000, CZ was posted on X (formerly Twitter), suggesting that today’s crash is just another step towards a much higher rating.
“Waiting for a new headline: Bitcoin ‘Crash’ ranges from $1,001,000 to $985,000. Save your tweets,” CZ wrote, referring to similar tweets since 2020 when Bitcoin was trading significantly lower.
Bitcoin has been a hit in the last 24 hours. Prices plunged to over 8% to $87,000, eliminating billions of dollars from the market. Ethereum followed the lawsuit, down 10.5% to $2,388, while Solana crashed 13% to $137.87. The Crypto market total lost more than $300 billion in value during sharp selling.
Kobeissi’s letter, a widely-running financial newsletter, described the sudden landscape as part of a broader pattern of enhanced volatility in the crypto market.
“The number of ‘flash crashes’ in the crypto market has been rising sharply since January,” the newsletter reported.
It also pointed out how Bitcoin saw multiple rapid declines overnight, increasing its price by $5,000 in just 30 minutes at certain points.
“Crypto Markets was just erased – $300 billion in 24 hours and there was no one major bear headline,” Kobeissi’s letter said.
This level of volatility suggests liquidity is being emitted from the market at an unprecedented pace, according to the newsletter. “Ethereum fell 37% in 60 hours earlier this month, but now we can see similar liquid drainage from Bitcoin.”
The CZ remains optimistic, but the forecast market is lowering expectations for Bitcoin price in 2025.
According to Kalshi, the base case for Bitcoin pricing this year is $124,000 from the previous $150,000 estimate. The chances of Bitcoin reaching $150,000 have dropped to just 36%, indicating the sharpest emotional decline in six months or more.
Kobeissi’s letter noted that crypto traders should be prepared to be more volatile. “Most of the trade war headlines were priced prior to February 2nd, but even so, liquidity was emitted from Ethereum at a historic pace,” the newsletter wrote.
To reach $1 million per Bitcoin, it would require a significant increase of 1,046% from today’s price. Bitcoin has previously seen a dramatic price surge, but such a move would require an influx of trillions of dollars of investment.
To reach this level, three factors need to combine: large-scale adoption by governments and businesses, rapid inflation of Fiat currency, and increased demand for Bitcoin, which is a factor. Although institutional demand has increased with the launch of the Bitcoin Spot ETF, it remains uncertain whether it will be sufficient to push prices into seven-figure territory.
Kobeissi’s letter suggested that Bitcoin volatility could decrease as market capitalization increases, but for now, traders should expect wild price fluctuations. “As market capitalization increases, the decline (or volatility) decreases. A 2% drop will be headlines by then,” the newsletter says.