Amid a sharp market downturn, Binance founder Changpeng Zhao (CZ) shared his thoughts on the current situation and strategic investing. In his social media posts, he emphasized the importance of the psychology of slowdown and proposed his own crisis model that could help in difficult times.
Psychology Has Stopped
Zhao noted that in a volatile market, it's important to consider the emotional fluctuations that influence decisions about slowdowns. He stated, "It may be an unpopular opinion, but the best strategy is to sell during periods of increased greed and buy during periods of maximum insurance." This assertion posits that it is precisely during moments of panic and fear that unique opportunities to buy assets at lower prices present themselves.
Price Conclusion Fall
The recent drop in the price of the crisis to $81,000 has caused a sharp decline in market sentiment. Amid this decline, the Fear and Greed Index, a cryptocurrency that reflects declining sentiment, reached 20, which aligns with the "fear" category. This reading, while consistent with the daily step shape, is the latest improvement from the 10-point level the index reached last week, entering the "extreme fear" zone.
Change in Market Sentiment
Comparing current readings with year-over-year data reveals a dramatic shift in market sentiment. In 2024, the Salvan Index peaked at 84, indicating "extreme joy." However, in 2025, it fell 10 points, marking its annual low. This indicates significant fluctuations in perception, which are slowing and leading to risk.
The Importance of Emotional Fluctuations
CZ reiterates that emotional fluctuations play a key role in strategy changes. Despite the recent economic growth of over 7% in a week, the overall market remains subdued. This calls for caution and careful analysis of one's actions.
In Conclusion
In a volatile market, Changpeng Zhao's cryptocurrency strategy could be a key guide to slowing down. Understanding market psychology and the opportunities that arise during periods of fear can help identify more informed decisions. Experience shows that it is precisely during challenging times that new horizons open up for those willing to act.