Binance founder Changpeng “CZ” Zhao said the crypto market’s roughly 50% decline over the past year cannot be pinned on a single cause.
Speaking to CoinDesk, CZ explained that the weakness seen in early 2026 stems from a mix of factors, including rising geopolitical tensions, a shift of investor capital toward artificial intelligence, and the industry’s typical four-year boom-and-bust cycle.
Bitcoin has been trending lower since last year, starting 2026 near $89,000 and briefly climbing above $96,000 before falling back to around $60,000. On a year-over-year basis, the drop is even more pronounced, with bitcoin down about 50% from its record high above $126,000 last October.
Despite the downturn, CZ remains confident in crypto’s long-term outlook. While acknowledging that much of his wealth is tied to the BNB token and the performance of Binance, he stressed that his optimism is rooted in years of experience in the industry.
He argued that growing global transaction volumes will continue to fuel demand for financial technologies, supporting crypto’s expansion over time, regardless of short-term volatility.
CZ also noted that capital flowing into emerging sectors like AI should not be viewed negatively, but rather as part of a broader innovation cycle that ultimately benefits the tech ecosystem.
On prediction markets, he said their expansion could improve price discovery and market efficiency. Although speculative behavior exists, he emphasized that speculation is a natural and necessary component of all financial markets, helping to provide liquidity.
Turning to regulation, CZ said proposed U.S. legislation such as the Digital Asset Market Clarity Act is important but unlikely to shape the industry’s long-term trajectory on its own. He expects the U.S. to remain a key player in crypto regulation, even as other nations develop their own frameworks.
He added that if Democrats regain control of part of Congress after the upcoming midterm elections, scrutiny of pro-crypto policies and figures may intensify, including actions taken by former President Donald Trump. CZ, who received a presidential pardon, said he is open to cooperating with any inquiries.
While he keeps his distance from U.S. politics, CZ acknowledged that election outcomes could influence the regulatory landscape. He also suggested that crypto users are becoming a meaningful voting bloc, warning that politicians who oppose the industry could risk losing support.
