Cathie Wood and Changpeng Zhao recently discussed Bitcoin, market cycles, and the October 11 crypto flash crash during a podcast conversation that quickly gained attention across the crypto community.
For the unversed, the October 10–11, 2025 flash crash was one of the biggest sell-offs crypto had ever seen, wiping out more than $19.5 billion in leveraged positions within 24 hours. The panic began after President Trump proposed 100% tariffs on Chinese imports.
Since then, many theories have blamed Binance for the brutal crash. BTC at that time was at its highest peak of $125,000, dropping to $101,000 within hours. Since then, BTC failed to reach the ATH again.
During the podcast discussion, Cathie Wood clarified that Binance was not responsible for triggering the sharp market collapse that happened during the October 11 crash.
Cathie Wood Clears Binance’s Name
Wood explained that while there was a software glitch during the event, Binance itself did not cause the market-wide drop.
“We know there was a software glitch, but Binance did not trigger the flash crash,” she said, adding that broader tariff-related panic and extremely nervous market conditions likely worsened the selloff.
Changpeng Zhao responded by thanking her for the clarification, revealing that her earlier comments had been heavily circulated in Chinese media, where many interpreted the crash as Binance’s fault.
“That statement was widely quoted by the media,” Zhao said. “Many people said Binance caused the collapse. I’m glad you’re clearing this up now.”
Wood also admitted she was unaware her previous comments had been taken out of context so widely.
CZ Shares Bullish Bitcoin Outlook
The conversation later shifted toward Bitcoin’s future and whether the traditional four-year crypto cycle is still playing out.
Zhao acknowledged that Bitcoin has seen weakness entering 2026 after the strong 2025 rally, but said several major macro factors could help speed up the recovery this time.
According to Zhao, improving stock market conditions under President Donald Trump’s administration could positively impact crypto markets as well.
“When stock markets do well, people have more free cash, and they diversify into crypto,” he explained.
He also pointed to rising geopolitical tensions and growing interest in gold as signals that Bitcoin could remain active as an alternative asset.
Bitcoin Recovery Could Arrive Faster
Despite recent volatility, Zhao said Bitcoin holding above previous major support levels remains encouraging. He added that the current correction may recover faster than previous bear market cycles.
“I’m hoping the worst part is over,” Zhao said, while noting that his comments were “not financial advice.”
Wood also backed Bitcoin’s long-term outlook, noting that institutional investors are increasingly stepping in during corrections. She said many institutions had been waiting for a pullback tied to the traditional four-year cycle before increasing exposure.
The discussion comes as Bitcoin continues attempting to regain momentum after recent market turbulence, with investors closely watching whether the next major rally is beginning to form.
