- Changpeng Zhao (CZ), founder of cryptocurrency exchange Binance, has attributed the sharp decline in crypto markets during the first half of 2026 to multiple contributing factors rather than a single cause.
- CZ cited geopolitical tensions, investors rotating capital towards the artificial intelligence sector, and the typical four-year cycle of the cryptocurrency market as the key drivers behind the decline in Bitcoin (CRYPTO:BTC) and other crypto assets.
- Bitcoin (CRYPTO:BTC) reached an all-time high last October, surpassing US$126,000, but has since lost approximately 50% of its value.
BTC was trading around US$89,000 at the start of the year, briefly rose above US$96,000, before subsequently falling back to approximately US$60,000.
CZ stated that despite short-term price fluctuations, the cryptocurrency sector will continue to grow over the long term.
He added that as trading volumes increase, demand for fintech products will also rise, and expressed confidence in the fundamental dynamics of the sector.
CZ noted that emerging sectors such as artificial intelligence are attracting speculative capital to the crypto market, which could create short-term pressure but yield positive outcomes over the long term.
CZ described the rapid growth of prediction markets as a positive development for price discovery and liquidity in the broader crypto ecosystem.
On regulation, CZ said that US legislative proposals such as the Clarity Act are important but will not alone determine the long-term trajectory of the crypto sector.
CZ warned that delays in US crypto regulation could allow other countries to establish their own regulatory frameworks first, potentially ceding America’s competitive position.
Regarding the upcoming US midterm elections, CZ noted that if the Democratic Party regains control of at least one chamber of Congress, Donald Trump’s support for the crypto sector and his pardons of crypto executives could face greater scrutiny.
CZ stated that he has “nothing to hide” and is prepared to provide information to authorities if requested.
At the time of reporting, Bitcoin price was $60,149.35.
