CZ Says Governments Are Buying Bitcoin as Breakout Signals Major Rally Ahead

• CZ says multiple countries are creating Bitcoin reserves after the U.S. led the move.
• Binance advises nations on wallet security and custody strategies for sovereign crypto holdings.
• Bitcoin’s breakout above resistance mimics past setups that triggered strong rallies after macro fear events.

Crypto influencer Crypto Rover posted on July 5 that “many countries are buying #Bitcoin for their reserves,” quoting Binance founder Changpeng Zhao (CZ). 

CZ said governments are now creating national Bitcoin reserves, following the lead of the United States. He explained that once the U.S.—one of the world’s largest economies—began holding Bitcoin, other nations felt pressured to act.

“The later you do it, the more expensive your crypto will be,”

 CZ said during a closed-door discussion.

U.S. Bitcoin Holdings Push Countries to Act

Zhao noted that the U.S. reportedly holds around 200,000 BTC. In response, other governments are seeking advice on how to start. Binance, according to CZ, is actively helping countries set up crypto reserves, guiding them through key decisions like wallet infrastructure and custody.

“For most countries, the starting amount is not as big as the U.S.,” he said.

He recommended that smaller holders use multi-signature professional custodial solutions where no single person can access funds. Once the reserves grow large enough, countries can then transition to self-managed cold storage systems.

Binance advises nations on both basic and advanced setup processes—ranging from selecting wallet types to determining whether they have the internal expertise to manage secure key storage. Zhao emphasized the importance of multi-layer security and institutional-grade custody, especially in early phases.

Bitcoin Breakout Signals Return of Bullish Momentum

Meanwhile, a fresh breakout pattern on Bitcoin’s chart signals that a strong upward move may be underway. The structure mirrors a previous breakout from late 2023, which triggered a sustained rally after the FTX collapse.

The chart, shared by analyst Crypto Rover, highlights how historical FUD events—including tariffs, war fears, and currency market instability—have repeatedly marked local bottoms. In both the weekly and daily views, Bitcoin first formed a horizontal accumulation range, then broke above a descending resistance line. This breakout structure previously led to significant rallies.

The upper panel shows Bitcoin’s 2023 recovery after the FTX crash. A long consolidation followed by a breakout above a descending trendline came just after the “Yen Carry Trade” dislocation. Bitcoin then rallied to new highs.

The lower chart displays a similar structure in 2025. Price action compressed under macro fear events, including war headlines and tariff pressure. Once again, Bitcoin broke above the resistance trendline.

With the breakout confirmed, the setup now resembles past bullish reversals. In both cases, accumulation under fear-driven conditions gave way to trendline breakouts and sharp price moves.

The structure suggests Bitcoin may now be preparing for another leg higher, targeting the next resistance zone as macro uncertainty continues driving investor demand for decentralized assets.