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Binance CEO shares his opinion on Bitcoin’s bottom, refutes claims that exchange is buying the dip

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20
Jun
  • Binance’s CZ gives his prediction of a Bitcoin bottom with his expectation coming during the “Bitcoin is dead” sentiment.
  • CZ explained why Binance transferred a high amount of Bitcoin (BTC) to a cold wallet.

Many crypto analysts and Bitcoin bulls struggle to predict Bitcoin’s bottom. However, Binance’s CEO has given his prediction about Bitcoin’s bottom. According to him, the “Bitcoin is dead” headlines will result in Bitcoin’s bottom. He added that history shows that BTC holders who bought the coin when those headlines were popular would be in huge profits now.

Bitcoin price has dipped by about 70 percent from last November’s peak price. In the last few months, the BTC price has plunged to the $20K range fuelled primarily by liquidity issues in the wider market. Other factors include the DeFi collapse and the Fed’s rate increase.

CZ provides is views about the Bitcoin bottom

On Monday, CZ tweeted that those with the better returns on their BTC investment are those who bought when the “Bitcoin is dead” sentiment was popular. He further said the bottom is when many no longer think that a Bitcoin rebound is likely. Buying Bitcoin at those price ranges represents the best chance to buy the dip.

However, CZ noted that his opinion doesn’t constitute financial advice now or in the future. Previously, many thought there would be a Bitcoin bubble burst when its price was trading above $65K.

History shows that 2011, 2013, 2017, and 2021-22 are the previous Bitcoin speculative bubbles. After falling to $17,708 last Saturday, Bitcoin’s price currently trades at $20,530. Many crypto firms and investors like the digital currency group have reiterated that they are taking advantage of the discount and buying more Bitcoin.

Related: Key things to know about Bitcoin (BTC) for the week ahead, on-chain developments

Binance denies buying more Bitcoins

CZ has also stated that it is false news that Binance bought more Bitcoins this past weekend. Various media reported that the controversial exchange increased its Bitcoin holdings over the weekend. One proof from these media reports was a BTC transfer from Binance to a cold wallet – a transfer involving 101,266 BTC.

CZ admitted that the transfer occurred, but he denied that it was the exchange making the purchase. He explained that an increase in Binance cold wallet means an increase in BTC deposits to Binance.

Most crypto whales and leading exchanges use these cold wallets to store their large crypto holdings. As the name implies, such holdings are stored in hardware devices. A cold wallet is different from a hot wallet because the latter needs an active internet connection to remain online.

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