Cathie Wood and Changpeng Zhao used a recent podcast appearance to revisit Bitcoin, market cycles, and the crypto flash crash of October 10–11, 2025. Wood said clearly that Binance was not responsible for setting off the broader market collapse. She acknowledged that a software glitch occurred during the event, but said the exchange itself did not trigger the sell-off.
The crash remains one of the biggest liquidation events the crypto market has seen. According to the source material, more than $19.5 billion in leveraged positions were wiped out in 24 hours. Panic started after President Trump proposed 100% tariffs on Chinese imports. Bitcoin had been trading at a record $125,000 before dropping to $101,000 within hours, and it has not returned to that all-time high since.
Wood says market panic, not Binance, drove the collapse
Wood said there was a software issue, but added that Binance did not cause the flash crash. In her account, the heavier pressure came from tariff-driven fear across markets and from already fragile sentiment in crypto at the time. She also said she had not realized how widely her earlier remarks had circulated out of context.
Zhao replied that those earlier comments had been quoted extensively in Chinese media, where many people took them as confirmation that Binance caused the breakdown. He thanked Wood for clarifying the point directly during the conversation.
CZ sees room for a quicker Bitcoin recovery
The discussion then shifted to Bitcoin’s next phase and whether the traditional four-year crypto cycle still fits the current market. Zhao said Bitcoin showed weakness going into 2026 after a strong 2025, but argued that several macro forces could make this correction shorter than past bear-cycle recoveries.
He pointed to the possibility that stronger equity markets under Donald Trump’s administration could help crypto as well. Zhao said that when stocks perform well, investors tend to have more available capital, and some of that money can rotate into digital assets. He also cited rising geopolitical tension and growing interest in gold as signs that Bitcoin can remain active as an alternative asset.
Institutional buyers remain part of the long-term case
Zhao said recent volatility has not erased one encouraging signal: Bitcoin is still holding above previous major support areas. He added that he hopes the worst phase is already behind the market, while also noting that his comments were not financial advice.
Wood backed Bitcoin’s longer-term outlook as well. She said institutional investors are increasingly stepping in during pullbacks, and that many had been waiting for a correction linked to the traditional four-year cycle before adding exposure. Bitcoin is still trying to rebuild momentum, and the market is watching closely to see whether the next major rally is beginning to take shape.