Bitcoin and BNB gain up to 3% when CZ makes its first tweet post-release.
Key receivers
Bitcoin's $65k breakthrough fuels altcoin FOMO, signaling a possible Q4 crypto rally. The release of CZ and incoming Fed rate cuts could accelerate altcoin momentum as investors seek higher-risk assets.
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Bitcoin and Binance Coin (BNB) prices rose as much as 3 percent on Changpeng Zhao's first tweet since serving his four-month sentence.The former Binance CEO's return to social media has sparked renewed interest in the crypto market.
Jim
— CZ 🔶 BNB (@cz_binance) September 28, 2024
Changpeng Zhao, popularly known as CZ, marked his return to social media on September 27 after being sentenced to four months in jail for failing to maintain an effective anti-money laundering (AML) program at Binance. His brief tweet coincided with a significant uptick in cryptocurrency prices, particularly Bitcoin and BNB, according to data from CoinMarketCap.
Bitcoin, the leader in market capitalization, rose to $65,000, a 3.2 percent increase over the past 24 hours. Similarly, Binance's home token, BNB, experienced a similar rise, rising 3.1% to reach $610. This coordinated price action highlights the continued influence of key industry figures on market sentiment.
Analysts at 10x Research predict a strong bull rally in Q4 2024, citing Bitcoin's recent rise above the $65K level and increased attention to altcoin speculation. According to Capriole Investment's Altcoin Speculation Index, it has seen a 13 percent gain in the past month, with Sei, Wormhole and Shiba Inu leading the gains. Potential Federal Reserve rate cuts could further fuel interest in high-beta altcoins, with many analysts predicting a significant uptick in the altcoin market in the coming months.
CZ's arrest comes on the heels of a $4.3 billion settlement between Binance and US authorities in November 2023. The deal resulted in CZ stepping down as CEO and accepting a $50 million personal fine. Despite stepping down from operational roles, CZ remains a significant shareholder in Binance, accounting for 64 percent of the total BNB supply.
Following CZ's departure, Binance CEO Richard Teng maintained that CZ's shareholder status remained unchanged. However, the plea agreement expressly prohibits CZ from participating in the management or administration of the cryptocurrency exchange.
The reaction of the crypto community to CZ's return to social media was swift and positive. His Twitter feed generated massive engagement within hours, reflecting the industry's continued interest in his vision and future endeavors. This response suggests that despite the legal challenges, CZ will continue to have significant influence in the cryptocurrency sector.
Market analysts see the price rally as proof of the crypto community's enduring faith in CZ's vision and leadership. The positive price action seen in both BTC and BNB reflects how optimism remains, despite CZ's potential to contribute to the industry if it doesn't work now.
Before the fine, CZ hinted at future interests in decentralized finance (DeFi), blockchain, Web3, artificial intelligence and biotechnology.
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