Binance’s former CEO Changpeng "CZ" Zhao believes Bitcoin could eventually reach the $1 million mark, even as the cryptocurrency faces a sharp downturn.
As Bitcoin dipped below $87,000, CZ posted on X (formerly Twitter), hinting that today’s crash is just another step toward a much higher valuation.
“Waiting for the new headline: Bitcoin ‘CRASHES’ from $1,001,000 to $985,000. Save the tweet,” CZ wrote, referencing a similar tweet from 2020 when Bitcoin was trading significantly lower.
Bitcoin faces market turmoil
Bitcoin has taken a hit in the past 24 hours. The price plunged over 8% to $87,000, erasing billions from the market. Ethereum followed suit, dropping 10.5% to $2,388, while Solana crashed 13% to $137.87. The total crypto market lost over $300 billion in value during the sharp sell-off.
The Kobeissi Letter, a widely followed financial newsletter, described the sudden downturn as part of a broader pattern of heightened volatility in crypto markets.
“Since January, the number of ‘flash crashes’ in crypto markets has risen sharply,” the newsletter reported.
It also pointed out how Bitcoin saw multiple rapid drops overnight, with prices plummeting by $5,000 in just 30 minutes at certain points.
“Crypto markets just erased -$300 BILLION in 24 hours without a single major bearish headline,” The Kobeissi Letter stated.
This level of volatility, the newsletter added, suggests that liquidity is being drained from the market at an unprecedented pace. “Ethereum fell 37% in 60 hours earlier this month, and now we are seeing similar liquidity drains from Bitcoin,” it noted.
Prediction markets no longer see $150,000 Bitcoin in 2025
While CZ remains optimistic, prediction markets have lowered their Bitcoin price expectations for 2025.
According to Kalshi, the base case for Bitcoin’s price this year is now $124,000, down from previous estimates of $150,000. The probability of Bitcoin hitting $150,000 has fallen to just 36%, marking the steepest drop in sentiment in over six months.
The Kobeissi Letter noted that crypto traders should be prepared for more instability. “Most of the trade war headlines were priced in before February 2nd, yet still, liquidity was drained from Ethereum at a historic pace,” the newsletter wrote.
Can Bitcoin realistically hit $1 million?
Reaching $1 million per Bitcoin would require an enormous 1,046% increase from today’s price. While Bitcoin has seen dramatic price surges before, such a move would demand an influx of trillions of dollars in investment.
For Bitcoin to reach such a level, three factors would need to align — mass adoption by governments and corporations, rapid inflation in fiat currencies, and an increase in Bitcoin’s scarcity-driven demand. Institutional demand has grown with the launch of Bitcoin spot ETFs, but whether it will be enough to push the price into seven-figure territory remains uncertain.
The Kobeissi Letter suggested that as market caps increase, Bitcoin’s volatility may decline, but for now, traders should expect wild price swings. “As market caps increase, the drops (or volatility) decrease. A 2% drop will make headlines by then,” the newsletter noted.