CZ Analyzes 2026 Crypto Downturn: AI Fund Flow, Geopolitical Tension, and Four-Year Cycle Combine

In a recent interview with CoinDesk, Binance founder Changpeng Zhao (CZ) attributed the sharp decline in the crypto market during the first half of 2026 — with Bitcoin falling about 50% from its October 2025 highs — to three interconnected factors: hot money being diverted to artificial intelligence, heightened geopolitical tensions, and the natural four-year cycle characteristic of crypto assets. CZ expressed optimism about the long-term outlook, highlighting the potential of prediction markets for price discovery and liquidity. He also predicted that the US CLARITY Act could pass before the end of the year, providing much-needed regulatory clarity.