CZ Blames Crypto’s 2026 Slump on AI Capital Shift, Geopolitical Tensions, and Four-Year Cycle; Bitcoin Down 50% from Last October's Peak

Binance founder Changpeng Zhao (CZ) attributed the 2026 crypto market downturn to a combination of geopolitical tensions, capital rotation into AI sectors, and the typical four-year crypto cycle. Bitcoin dropped about 50% from its October 2025 high. CZ views AI's draw of 'hot money' as a long-term positive, and endorses prediction markets for price discovery. He also expects the U.S. CLARITY Act to pass by year-end.