CZ, the founder of Binance, said there is a possibility that the cryptocurrency market is entering a 'super cycle.' He cited the Washington regulatory stance making a 180-degree turn toward digital assets as a key factor in this shift.
CZ's bullish super cycle prediction emerged at a time when the U.S. government has actively shifted its strict regulatory approach over the past few years.
Reasons behind Binance founder's prediction of a cryptocurrency super cycle
Central to this shift is the recent passage of the U.S. Settlement Stablecoin National Innovation and Assurance Act (GENIUS Act).
The GENIUS Act was enacted last July, establishing the first federal regulatory framework for payment stablecoins. This has positioned the asset as a foundational component of the U.S. financial system, no longer viewed as posing systemic risks as previously feared.
Meanwhile, industry insiders are focusing on the Senate Banking Committee's scheduled review of the CLARITY bill on January 15.
If passed, this bill would bring an end to the long-standing jurisdictional dispute between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), obligating both agencies to establish a unified compliance framework.
Signs of this new inter-agency cooperation are already emerging.
Last year, the SEC removed digital assets from its 2026 audit priority list, signaling a retreat from an enforcement-driven regulatory approach. The agency is now redirecting its resources toward generative AI and risks associated with third-party vendors.
This regulatory clarity is already driving inflows from institutional investors. In particular, spot Bitcoin ETFs have attracted over $56 billion in new funds since their launch in 2024.
At the same time, traditional financial institutions such as JPMorgan and Morgan Stanley are actively advancing the development of crypto-focused products.
However, industry analysts are urging caution regarding these optimistic forecasts, warning investors that straightforward growth is not guaranteed solely by favorable regulatory developments for digital assets.
'If you think a supercycle is coming from this tweet, you're likely to be very disappointed. You should lower your expectations. There's a possibility nothing will happen in the next year. And that's good, because it gives you more time to accumulate,' said traditional finance analyst Rajat Soni.
Binance's Zhao also emphasized the need to temper expectations for a supercycle, stating, 'Future predictions are impossible.'
