As volatility roars back into the crypto markets, the blunt‑yet‑steady words from Changpeng Zhao (CZ), founder of Binance, offer an anchor in a choppy sea: “There will be many dips along the way.”
Here’s a closer look at what’s been going on, what it means, and how investors might navigate forward.
1. What’s happening?
-
A combination of factors triggered a sharp pull‑back: The Federal Reserve’s (Fed’s) rate cut announcement—0.25 percentage points, placing the benchmark lending rate at 3.75‑4.0%—surprisingly weighed on crypto, rather than lifting it.
-
Onchain data from Binance showed over 10,000 BTC moved by short‑term investors within 24 hours, signalling that many traders were reacting quickly to the news.
-
The flagship crypto, Bitcoin (BTC), dropped to approximately US$106,993 before recovering toward US$109,000.
-
For context: October 2025 marked BTC’s worst October in seven years, with a loss of about 6.8%.
2. Why the “unexpected” reaction?
On the surface, a Fed rate cut is often good for risk assets. But in this case:
-
Market expectations may have been built on the hope of a cut and easier monetary conditions; when it came, the cut perhaps signalled concern about the economy—thus triggering risk‑off sentiment.
-
The sharp drop in short‑term holdings implies many were caught in momentum trades rather than conviction plays—so the rapid exit amplified the move.
-
CZ’s remark that “there will be many dips” serves both as warning and reminder that down‑swings can be part of broader cycles rather than the end of the road.
3. What does CZ mean by “don’t panic”?
-
He’s emphasising that volatility is part of the game in crypto. Sudden drops don’t necessarily signal catastrophic failure.
-
He implicitly highlights the difference between short‑term traders (who might react to every headline) and long‑term holders (who maintain conviction through turbulence). The article mentions that long‑term holders (“diamond hands”) are largely unmoved.
-
This is not investment advice, but more of a psychological boost: when markets shake, staying calm and assessing rather than reacting is often wiser.
4. What should investors keep in mind?
-
Expect volatility: The phrase “many dips along the way” means this may not be a one‑off drop; further swings are possible.
-
Don’t equate drop with doom: According to the article, this move is seen as a “shakeout” of weaker hands rather than a structural collapse.
-
Know your horizon: If you’re a short‑term trader, you might need tighter risk controls and more active monitoring. If you’re a long‑term investor, these dips might be opportunities.
-
Balance emotion with strategy: Keeping a cool head matters. “Don’t panic” isn’t a guarantee everything will rebound immediately—it’s a reminder to avoid emotional decisions.
-
Stay informed: While headlines matter, markets often move ahead of or beyond them. Understand the broader context (economy, regulation, on‑chain flows).
5. Final thoughts
In the whirlwind of the weekend’s crypto turbulence, CZ’s voice stands out for its clarity and grounded tone. Yes — we may see more dips. Yes — things may feel scary when prices tumble. But the message here is: that’s part of the terrain.
If you’re invested in crypto, this is a time for reflection:
-
Are you comfortable with the risk you’re taking?
-
Is your strategy aligned with your goals and time‑horizon?
-
Are you prepared for volatility—not just when markets are calm, but when they swing hard?
Because rather than seeing this as just another drop, perhaps it’s a reminder: in crypto, the only constant is change. And those ready for change—and able to stay calm—may be better positioned for whatever comes next.
Ready to start your cryptocurrency journey?
If you’re interested in exploring the world of crypto trading, here are some trusted platforms where you can create an account:
- Binance – The world’s largest cryptocurrency exchange by volume.
- Bybit – A top choice for derivatives trading with an intuitive interface.
- OKX – A comprehensive platform featuring spot, futures, DeFi, and a powerful Web3 wallet.
- KuCoin – Known for its vast selection of altcoins and user-friendly mobile app.
These platforms offer innovative features and a secure environment for trading and learning about cryptocurrencies. Join today and start exploring the opportunities in this exciting space!
Want to stay updated with the latest insights and discussions on cryptocurrency?
Join our crypto community for news, discussions, and market updates: CryptoBCC on Telegram.
For collaborations and inquiries: CryptoBCC.com@gmail.com
Disclaimer: Always do your own research (DYOR) and ensure you understand the risks before making any financial decisions.
