Market Cycle: Four-Year Cycle with Rising Lows, Bitcoin $16,000 Was the Bottom
In a Galaxy interview, CZ stated that the four-year crypto market cycle pattern remains valid. Current prices have retraced about 50%, while past cycles saw 80% retracements. After the Luna crash and FTX collapse in 2022, Bitcoin bottomed at $16,000 and has since risen 4-5 times. Each cycle starts higher than the previous, with rising lows. CZ refrains from predicting the exact bottom but notes that previous highs (e.g., $60,000) often act as support. He admits he is not a great technical analyst but observes this pattern holds historically.
Traditional Finance and Crypto Fusion: Unified Fintech Industry, Coexistence of Centralized and Decentralized
CZ believes crypto and traditional finance should not be separated; integration is inevitable. Crypto companies can offer loans, savings, stock trading, and payments, while traditional financial institutions can use blockchain technology. On centralization vs. decentralization, he argues that any platform or team has centralized elements, but technology pushes toward decentralization. A decentralized world should accommodate centralized participants who can provide low-cost, high-quality services and attract users via network effects. Centralized monopolies may eventually lose their market position. Both will coexist long-term, but CZ is a staunch supporter of decentralization.
Private Chains and National Chains: Most Countries Want Their Own Blockchain
CZ reveals discussions with leaders of many countries indicate a desire to build national blockchains, but they need time to accept giving up control over currency and financial sectors. He sees no problem—decentralization doesn't mean everyone must use the same blockchain. If Wall Street giants use private blockchains with trillions flowing, retail may be excluded, but the enterprise internet model has its value.
Perpetual Contracts and Liquidity: CME Entry Is Positive, Forex Trading to Move On-Chain
Perpetual futures were first created by BitMEX in 2014, and Binance launched them in 2019. CME and other traditional giants entering crypto futures is positive, as Binance never served US institutions. More liquidity is the best protection for consumers. CZ predicts that foreign exchange trading will also move to blockchain. He emphasizes Binance's user base is highly distributed, and crypto exchanges enable global investors to buy stocks and bonds from other countries, boosting liquidity and demand without harming existing exchanges.
Hyperliquid and Prediction Markets: Innovative Market Niches, Polymarket Gets Official Support
CZ praises Hyperliquid for proving a previously non-existent market niche—a small team occupying a segment where Binance cannot compete (no KYC, claims of decentralization). Regarding prediction markets, he considers Polymarket and similar projects excellent inventions, noting the CFTC chairman's supportive tone and backing from key US government figures. Prediction markets allow price discovery and liquidity. He expects 100-1,000 such projects to emerge.
BNB Chain Upgrade and L1/L2: Upgrade During Bear Market, Future Belongs to L1
CZ advises blockchain projects to perform major upgrades during bear markets, not bull runs. BNB Chain is developing a next version with faster speeds, lower costs, and better privacy controls. He criticizes BASE for paying more in OP licensing fees than its actual L1 costs. He notes Vitalik realized L2s do not help L1 and has refocused on L1. While strong L2 solutions exist, CZ believes the future belongs to L1, though a L1-L2 cycle may repeat.
Yzi Labs Investment Strategy: 70% Crypto, 20% AI, 10% Biotech – Invested in Artificial Womb and Knee Regeneration
CZ reveals Yzi Labs' allocation guidelines: ~70% crypto, ~20% AI, ~10% biotech. The philosophy is to invest for impact rather than returns, e.g., funding drug research for common diseases even at a loss. Invested projects include an artificial womb company that can gestate babies in a machine (tested in mice, human use in 5-10 years) and a knee cartilage regeneration technology using 3D-printed scaffolds (entering human clinical trials). CZ expresses most excitement about biotech companies.
Views on AI and Crypto's Future: AI Hard to Regulate, Crypto Won't Die
CZ uses multiple mobile AI apps (OpenAI, Anthropic/Claude, Deepseek, Kimi). He finds US LLMs more precise but Chinese models good. He warns AI could be dangerous and regulation is difficult but critical. Compared to crypto, crypto cannot destroy civilization. He notes hot money flows into AI, but AI trading actually contributes to crypto volume. Blockchain is API-driven, making it AI-friendly. In the future, AI, blockchain, and the internet will collaborate to build a better financial system. Crypto will not die but become a massive industry.