Bitcoin price has sparked significant attention after mimicking a scenario predicted by Binance Founder Changpeng Zhao (CZ) in a tweet from four years ago. On December 17, 2020, CZ predicted, “Waiting for the new headline: #Bitcoin ‘CRASHES’ from $101,000 to $85,000. Save the tweet.”
Is CZ’s Bitcoin Price Prediction Coming True?
Fast forward to December 2024, Bitcoin price behavior is eerily reminiscent of this prediction. BTC, which recently reached a high of $108,000 earlier this week, plunged to $92,175 on Friday, December 20. Hence, concerns are mounting about a potential drop to $85,000, mirroring CZ’s old forecast.
When asked to delete the tweet, CZ doubled down, responding, “Wait for the new headline, #bitcoin ATH again, again, again…” His comments suggest confidence in Bitcoin’s long-term resilience, even amid short-term turbulence.
Adding to the volatility, approximately $25 million in short positions would be liquidated if Bitcoin rebounds to $103,400. Market data reveals that 62.07% of traders on Binance currently hold long positions on BTC, indicating strong bullish sentiment among retail traders.
Wait for the new headline, #bitcoin ATH again, again, again…
— CZ 🔶 BNB (@cz_binance) December 20, 2024
However, analysts caution that the concentration of long positions could exacerbate downside risks if BTC price continues its slide. A sharp drop could trigger cascading liquidations, intensifying price volatility.
Bitcoin’s sharp fluctuations underscore the ongoing tug-of-war between bullish traders eyeing new all-time highs and bearish pressures driven by market corrections.
However, CZ’s confident stance offers a reminder of BTC’s historical cycles of peaks and troughs. Thus, the crypto market remains on edge, closely monitoring Bitcoin’s next moves, as the potential for both new highs and deeper corrections keeps traders alert.
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