Former Binance CEO Changpeng Zhao (CZ) reassured investors that “Bitcoin won’t die”, despite the market downturn. His statement came as BTC fell below $84K, driven by Trump's trade wars, ETF sell-offs, and Federal Reserve statements.
Over the past seven days, Bitcoin has dropped 11%, causing widespread panic. However, CZ emphasized that such volatility is a natural part of market cycles and urged investors to stay rational.
How Deep Will the Correction Be
CryptoQuant's CEO also highlighted that 30% pullbacks are common in bull markets. He reminded investors that in 2021, Bitcoin dropped by 53% before reaching a new all-time high.
According to him, selling during a correction is a mistake, as sharp price movements shouldn't be seen as an exit signal.
MVRV Indicator Signals Further Growth Potential
Analysts point to the Market-Value-to-Realized-Value (MVRV) ratio, which suggests Bitcoin still has room for upside in this cycle.
Chapo, CEO of Assure DeFi, predicts that MVRV could peak at 3.2, signaling another bullish year in 2025.
In April 2021, when MVRV hit similar levels, Bitcoin surged 101% within months to reach $58.2K.
Currently, MVRV stands at 1.95, with Bitcoin trading around $86.3K, according to CoinMarketCap.
Market Pressure and Trump’s Trade Tariffs
Bitcoin’s drop below $90K on February 25 came a day after Trump reaffirmed that 25% tariffs on Canada and Mexico will proceed as planned.
Bitcoin’s ATH at $109K on January 20 occurred right before Trump’s inauguration, with MVRV peaking at 2.44.
According to CryptoQuant’s Head of Research, Julio Moreno, Bitcoin may fall further before resuming its upward trend.
"All valuation indicators suggest a correction phase. This could take time. MVRV is currently below its 365-day average," Moreno wrote in X.
Despite the pressure, analysts believe this pullback does not signal the end of the bull cycle. Do you agree?
This post is for informational purposes only and is not an ad or investment advice. Please do your own research making any decisions.
