Binance founder Changpeng ‘CZ’ CZ will be free to leave prison by Sunday, September 29, when he completes his four-month jail sentence. The 47-year-old founded one of the largest crypto exchanges and was sentenced for violating U.S. money laundering laws.
As the broader crypto community anticipates his release, speculation about how this could trigger a market rally is making the rounds. In an X post, analyst WIZZ predicted that CZ’s release from prison could push Bitcoin to the $70,000 level.
The Legal Battle That Sent Binance Founder to Prison
CZ’s journey to prison commenced when the U.S. Department of Justice (DOJ) investigated Binance’s activities. The charges against Binance centered on money laundering, bank fraud, and violation of regulatory sanctions. The DOJ’s investigation, which spanned over three years, grew into a possible criminal charge against CZ.
The Binance Founder pleaded guilty to resolving all issues with the U.S. authorities and escaped criminal prosecution. As part of the conditions set, CZ quit his role as Binance CEO. In a statement, CZ described the resignation as “the best for our community, for Binance, and myself.” Notably, it was the only way to keep the Binance exchange in operation.
In an April 30 ruling this year, a U.S. Court presided over by Judge Richard Jones sentenced CZ to four months in prison for violating U.S. money laundering laws. In addition to the case with the DOJ, the Securities and Exchange Commission (SEC) also leveled charges against Binance, some executives, and CZ.
CZ and ‘Uptober’ Fuels Crypto Community Anticipation
Within days of his release, the crypto community believes this could trigger growth in the price of Bitcoin and other cryptocurrencies. Additionally, members believe the crypto market could rally as CZ will regain his freedom on the eve of “Uptober.”
For context, Uptober is a play on the words ‘Up’ and ‘October’. The term, which gained popularity among users, highlights the historical bullishness of cryptocurrencies at this time of the year. Major cryptos, especially Bitcoin, have been known to surge around October. Hence, traders are always optimistic about a rally.
The combined factors of CZ’s anticipated release and Uptober are not the only bullish sentiments for a market rally. The recent move by the U.S. Federal Reserve to cut interest rates by 50 basis points has also boosted crypto assets.
Notably, Bitcoin price has halted its fluctuations and began a steady climb from $58,246 about a week ago to $63,401.40 at the time of writing. Many, like WIZZ, anticipate a leap to the $70,000 level with the release of the Binance Founder in a matter of days.
Is the Market Rally Guaranteed?
Despite these bold speculations, market experts maintain that crypto assets are inherently volatile. As such, unforeseen factors could change market trends. Some skeptics feel these factors expected to cause a rally may be a case of “buy the rumor, sell the news.”
Some investors have already accumulated assets ahead of this time. Therefore, the significant price growth of Bitcoin and some other altcoins may likely be the only increase that will emerge. The coming days will reveal whether a crypto market is set for a major rally or not.
