Navigating Bitcoin Volatility: CZ and Teng's Strategic Perspective for Long-Term Gains

Bitcoin's inherent volatility has long been a double-edged sword for investors. While sharp price swings create uncertainty, they also present opportunities for disciplined traders to capitalize on dips. Changpeng Zhao (CZ), founder of Binance, and Richard Teng, its CEO, have offered distinct yet complementary perspectives on navigating this volatility. Their strategies emphasize a blend of opportunistic "buy the dip" tactics and robust risk management, reflecting a nuanced understanding of market dynamics.

CZ's Disciplined "Buy the Dip" Philosophy

CZ has demonstrated a consistent pattern of purchasing cryptocurrencies before significant market downturns. For instance, he acquired Bitcoin in 2014 and Binance Coin (BNB) in 2017, both followed by sharp price declines. While he acknowledges this behavior, he cautions against treating it as a replicable strategy for others, stressing that market predictions are inherently uncertain. Instead, CZ underscores the importance of risk management, advising investors to "learn risk management" and avoid overconcentration of capital. His approach aligns with a staged entry strategy, such as the one proposed by Standard Chartered analyst Geoff Kendrick, which recommends buying Bitcoin in three parts during a downturn to mitigate the risk of entering at a local peak.

However, CZ's philosophy is not without caveats. Historical data from 2020 to 2025 reveals that "buy the dip" strategies can backfire, particularly during systemic crises like the Terra/UST collapse or the FTX implosion, where dips signaled prolonged bear markets. CZ's emphasis on investing only what one can afford to lose and maintaining a balanced portfolio serves as a critical counterpoint to the allure of aggressive dip-buying.

Teng's Macro-Driven Approach to Volatility

Richard Teng has positioned Bitcoin's volatility within the broader context of traditional asset classes, arguing that its price swings are part of natural economic cycles. In November 2025, he attributed Bitcoin's 21.2% drop to investor deleveraging and risk aversion, phenomena also observed in equities and tech stocks. Teng's perspective highlights that Bitcoin's volatility is not unique but rather a reflection of global macroeconomic trends, such as concerns over an AI-driven valuation bubble and geopolitical uncertainty.

Despite short-term declines, Teng remains bullish on Bitcoin's long-term trajectory. He notes that the asset is still trading at more than double its 2024 price, a testament to growing institutional adoption and mainstream acceptance. Teng also views corrections as a "healthy" phase for the crypto industry, allowing for strategic reassessment and stabilization. While he has not outlined specific "buy the dip" tactics, his focus on macroeconomic cycles underscores the importance of aligning investment decisions with broader market fundamentals.

Integrating Risk Management for Sustainable Gains

Both CZ and Teng emphasize risk management as the cornerstone of navigating Bitcoin's volatility. CZ's advice to diversify exposure and avoid overleveraging is particularly relevant in a market prone to sudden swings. Teng's macro-driven analysis complements this by encouraging investors to contextualize price movements within larger economic trends, rather than reacting impulsively to short-term dips.

A structured approach, such as the staged buying strategy proposed by Standard Chartered, can further enhance risk-adjusted returns. By spreading purchases across price thresholds, investors can reduce the impact of timing errors while capitalizing on potential rebounds. However, this requires rigorous discipline and a clear understanding of one's risk tolerance.

Conclusion

Bitcoin's volatility, while challenging, offers opportunities for investors who adopt a disciplined, strategic mindset. CZ's "buy the dip" pattern and Teng's macroeconomic insights collectively highlight the importance of balancing opportunism with caution. By integrating staged entry strategies, diversifying exposure, and aligning decisions with broader market cycles, investors can navigate Bitcoin's turbulence while positioning themselves for long-term gains. As CZ and Teng both underscore, success in this space hinges not on predicting the market but on managing risk with precision and patience.