Multiple Causes, Not One Single Factor
Changpeng Zhao (CZ), founder of Binance, shared his views on the sharp decline in the crypto market during the first half of 2026 in an interview with CoinDesk. He stated that the downturn was not driven by a single reason but rather a combination of geopolitical tensions, investors shifting capital toward artificial intelligence (AI), and the typical four-year crypto cycle. These factors collectively led to sustained declines in Bitcoin and other crypto assets.
Bitcoin hit an all-time high of over $126,000 in October last year and has since dropped about 50%. At the start of this year, Bitcoin opened near $89,000, briefly rose to just above $96,000, and then fell to around $60,000. Regarding short-term price volatility, CZ expressed no concern for the industry itself, emphasizing that the crypto sector will continue to develop in the long run, with increasing demand for fintech services and a growing number of transactions.
AI Absorbs Hot Money, Potentially Positive Long-Term
CZ noted that emerging sectors like AI are absorbing 'hot money' from the crypto industry. However, he stressed that this could be a positive factor in the long term, as capital flowing between different verticals contributes to the overall maturation of the financial ecosystem. Speaking on prediction markets, he said they are growing rapidly as tools for price discovery and liquidity, which is beneficial for the public.
Regulatory Chess: Tactical Bills, Global Race
On the regulatory front, CZ evaluated the U.S. Clarity Act and similar standalone bills as important but tactical matters that will not determine the long-term growth of the crypto industry. He personally hopes the Clarity Act will pass, but noted that if U.S. legislation is delayed, other countries may take the lead in establishing rules, thereby gaining an early-mover advantage.
Furthermore, CZ indicated that if Democrats regain control of at least one chamber of Congress after the midterm elections, they may review Trump's support for the crypto industry and his pardons of crypto executives. He reiterated that he has 'nothing to hide' and is willing to cooperate if relevant parties seek information. When discussing political influence, CZ said he tries to stay away from U.S. politics, but believes that any anti-crypto figures could now lose a considerable number of votes.