Binance founder Changpeng Zhao said that the sharp decline in the cryptocurrency market in the first half of 2026 cannot be attributed to a single cause. According to CZ, geopolitical tensions, investors shifting towards the artificial intelligence sector, and the typical four-year cycle of the crypto market all contributed to the decline in Bitcoin and other crypto assets.
Bitcoin reached an all-time high last October, surpassing $126,000. However, since then, it has lost approximately 50% of its value, trading around $89,000 at the beginning of the year. After briefly rising above $96,000, BTC subsequently fell back to around $60,000.
CZ stated that despite short-term price fluctuations, the crypto sector will continue to grow in the long term. He added that as trading volumes increase, demand for fintech products will also rise, and he is not concerned about the fundamental dynamics of the sector.
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CZ stated that emerging sectors like artificial intelligence are attracting “hot money” to the crypto market, which could create pressure in the short term but yield positive results in the long term. CZ also considered the rapid growth of prediction markets in terms of price discovery and liquidity a positive development for the public.
Touching on the regulatory side, CZ said that bills like the Clarity Act currently under consideration in the US are important, but they will not alone determine the long-term growth of the crypto sector. While expressing hope that the law will be passed, CZ stated that delays in US regulations could allow other countries to take the lead in establishing their own rules.
CZ also said that if the Democratic Party regains control of at least one chamber of Congress after the US midterm elections, Donald Trump’s support for the crypto sector and his pardons of crypto executives could be scrutinized further. Stating that he has “nothing to hide,” CZ said he is ready to provide information if requested.
*This is not investment advice.
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