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NEW YORK - Binance founder Changpeng “CZ” Zhao made a daring statement that caused mixed reactions in the crypto community. He said that U. S. banks were secretly purchasing Bitcoin at the same time when retail investors were panic selling, thus leading to speculation of an impending institutional accumulation phase.
The
message from CZ on Monday via X (formerly Twitter) was immediately spread all
over the internet by cryptocurrency fans. “While you were panic selling, U. S.
banks were loading up on Bitcoin,” he wrote, implying that the conventional
financial sector could take advantage of the current market instability to
accumulate more of the valuable digital asset for long-term investment
purposes.
This is
happening as Bitcoin trades around $45,000, having recovered from a selloff
experienced in mid-December and which had shaken investor confidence. According
to analysts, CZ has just brought out into the open what always happens in
financial markets; retail investors sell low because of fear while institutions
buy cheaply and quietly.
Institutional
Accumulation Behind Market Volatility
Although
CZ did not mention the specific U. S. banks in his reference, there have been
recent reports showing that some top banks such as Morgan Stanley and JPMorgan
Chase are growing their digital asset wings or exposure through crypto-tied
investments.
Insiders
reveal that certain banks have increased their Bitcoin holdings using ETFs,
futures, and custody partnerships, especially following the recent surge in
regulatory clarity regarding spot Bitcoin ETFs. The combination of cheaper
market prices and increased access for institutions seems to provide an ideal
environment for accumulation.
According
to financial experts, big banks have a plan to expand their portfolios with
Bitcoin and other cryptocurrencies but they want to do it silently because
people are still not very confident about them. “Institutions typically move
opposite the crowd,” noted one crypto market strategist. “When retail panic
hits, that’s often when Wall Street is most active.”
CZ’s
Comments Spark Debate Across Crypto Circles
A post by
CZ led to heated discussions on social media platforms where some traders
praised him for being open while others accused him of trying to manipulate the
market. Those who support him argue that his statement confirms the increasing
integration between traditional finance and digital assets, whereas opponents
advise caution claiming that he might be attempting to shore up a weak market.
Irrespective
of its purpose, the story that American banks are secretly acquiring Bitcoin
reinforces the view that institutional adoption is gathering pace even as
retail involvement proves unstable.
Bitcoin’s
Next Move
The market
watchers are now closely looking at what will happen in the next few weeks. If
there is continued buying by institutions then we can expect Bitcoin to gain
strength again and move towards February on a bullish note.