CZ's cycle theory may seem like old news, but the key point is that it actively normalizes the current approximately 50% retracement to soothe the market.

The background of this statement is that since the end of 2025, discussions about the "failure of the four-year cycle" and abnormal market structures have occurred multiple times, and institutional predictions about liquidity prospects have also shown serious disagreements.
The crucial detail is that he clearly points to the core basis distinguishing this cycle from previous ones: a "180-degree shift in the US government's attitude toward the crypto industry."
This is not just a vague statement but a confirmation of the structural change since August 2025, when the US intensively introduced legislation, executive orders, and policy stances shifted toward support.
His argument essentially anchors the current market volatility on a more solid "policy bottom," downplaying the influence of technical factors and sentiment.
Therefore, CZ's remarks are not only a confidence boost for the market but also a redefinition of the industry's value coordinates:
The driving logic of the cycle is shifting from mere halving and liquidity to the process of "institutional infrastructure" composed of ETFs, stablecoins, RWA, and clear regulatory frameworks.
Price fluctuations are viewed as short-term noise within this long-term process.
Compared to 2022 or 2018, the biggest difference in this cycle is the 180-degree shift in the US government's attitude toward the crypto industry.
He states that four years ago, the US government took a crackdown stance on crypto, but now the US is promoting a regulatory framework and related discussions, leading other countries to follow suit.
CZ also mentioned that the participation of ETFs, stablecoins, RWA, and more institutional involvement all indicate a significant improvement in the industry's genuine development.
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