‘Extreme Fear’ in Bitcoin: CZ from Binance Sees Opportunity, Not Warning

Bitcoin wraps up 2025 amid ‘extreme fear’, experiencing its second-worst fourth quarter ever. The cryptocurrency has decreased by 23% this quarter, surpassed only by a 42% decline in 2018. In his holiday message, Changpeng Zhao, the founder of Binance, urged discouraged traders and investors to view this as a time to "buy the fear," rather than giving in to fear, uncertainty, and doubt (FUD). He reminded them that those who benefited the most did so by purchasing during periods of fear, not at all-time highs (ATH).

Key Takeaways

Bitcoin is seeing ‘extreme fear’ with a notable 23% drop in Q4 2025.
Changpeng Zhao of Binance encourages investors to buy during fear, drawing from historical trends.
Previous extreme fear scenarios, such as in September 2024, led to significant price rebounds.
Market opinions on Bitcoin's future are nearly evenly divided as we head into 2026.
Miner price and production costs may influence Bitcoin’s recovery potential in the coming months.

‘Extreme fear’ returns to Bitcoin - Binance’s CZ sees a reward, not a warning

Bitcoin CZ

Source: X

Is a BTC Reversal on the Horizon?

Historically, periods marked by ‘extreme fear’ have often acted as valuable buying opportunities. For instance, in September 2024, Bitcoin (BTC) was priced at $54,000 and went on to double, surpassing $100,000 by the end of the year. Similarly, another moment of ‘extreme fear’ linked to the Trump tariff wars in Q1 2025 saw BTC drop to $77,000, only to rebound to over $126,000 by October.

Bitcoin

Source: CryptoQuant

Given these trends, many suggest that we may be on the cusp of another opportunity for growth. However, some analysts remain cautious, predicting that BTC could continue to decline further into Q1 2026. Notably, market commentator Jim Cramer expresses a fully bearish outlook on BTC. Historically, his pessimistic views have sometimes indicated market bottoms, presenting a contrarian trading opportunity.

Bitcoin

Source: Unbias

The consensus among analysts on Bitcoin’s direction appears almost evenly split as we move into 2026.

Mining Pressure and Potential for Recovery

A critical aspect linking Bitcoin's price to miner performance and production costs suggests a possible recovery could be on the horizon. For those unfamiliar, the miner price represents the level at which Bitcoin must trade for miners to remain profitable; if it drops too far, miners may capitulate, resulting in a sell-off that could push BTC prices lower. Meanwhile, production costs indicate the average of what it costs to mine one BTC, factoring in expenses like electricity, mining hardware, and computational resources.

Bitcoin

Source: X

Historically, Bitcoin's bear market declines have not lingered below these crucial production cost levels, which currently stand at $80,000. Presently, miners appear to be holding their positions without significant sell-offs, as indicated by the Miners’ Position Index (MPI).

Bitcoin

Source: CryptoQuant

This situation could foster recovery if demand from exchange-traded funds (ETFs) picks up. However, uncertainties such as the U.S. tax season slated for Q1 2026 and other macroeconomic shifts may influence future price trends.

Final Thoughts

As Bitcoin navigates through this period of extreme fear, stakeholders must keep an eye on historical patterns and market indicators. While some analysts express caution about the potential for further declines, others see chances for recovery and growth. Investors are advised to remain informed and make decisions based on a combination of market trends and personal risk tolerance.