What To Know:
- Binance CEO Richard Teng attributed Bitcoin’s downturn to broad market deleveraging and rising risk aversion, noting the pattern aligns with movements across major asset classes.
- Bitcoin has fallen more than 21% in November and over 23% across three months, a decline Teng described as part of a normal profit-taking cycle after an extended rally.
- Teng declined to comment on whether CZ may return to Binance, emphasising that company operations remain under a seven-member board amid heightened regulatory pressure.
Bitcoin’s recent price dip reflects broader market dynamics rather than a cryptocurrency-specific shock, Binance CEO, Richard Teng said on Friday. Bitcoin’s recent fall reflects broader market dynamics rather than a cryptocurrency-specific shock. He blamed the drop on deleveraging and increased risk aversion across all asset classes.
Binance CEO Weighs In on Bitcoin and Market Conditions
Talking at a media roundtable, Teng explained the steep monthly decline in Bitcoin as a natural part of market cycles. “Like any asset class, there will always be different cycles and fluctuations. What you’re seeing isn’t unique to cryptocurrency prices. Currently, there’s a certain degree of risk aversion and deleveraging in the market. Although Bitcoin’s price has fallen, its trading price is still more than twice the 2024 level,” he said.
Data show Bitcoin dropped 21.2 percent in November and lost 23.2 percent over three months after reaching an all-time peak above $126,000 in early October. The token traded near $82,035 following a further intraday decline, a sequence that has renewed debate about whether the market is entering a structural correction or merely a temporary pullback.
Teng linked the retracement to a wave of profit-taking that followed an extended rally. Over the past 18 months, institutional interest and new crypto investment products lifted valuations, he said. That run-up prompted some investors to lock in gains and reduce leverage, exerting downward pressure on prices. “Over the past 1.5 years, the crypto sector has performed very, very well, so it’s only natural for people to take profits. Any form of consolidation is actually beneficial to the industry, allowing it to take a breather and stand firm,” he added.
The sell-off occurred as broader financial markets adjusted to concerns about an AI-driven valuation surge and whether tech earnings can sustain elevated multiples. Chipmaker Nvidia’s strong results failed to immediately calm investor nerves, and sentiment shifts in traditional markets appeared to spill over into digital assets. Margin calls and reduced speculative flows amplified price moves.
Observers say volatility is an intrinsic feature of nascent markets and that recent turbulence does not, by itself, signal the demise of digital assets. Some analysts argued that periodic consolidation can be constructive, which helps to flush out excessive leverage and speculative excess. Market volatility also intensifies regulatory scrutiny and can deter cautious institutional participants. Amid that, investors are still unsettled about corporate governance and leadership at exchanges. When it came to that question — whether Binance founder Changpeng Zhao might return to the firm following a presidential pardon in October, Teng did not say whether he had any intention of returning. Zhao is still a controlling shareholder with certain rights, he said, however day-to-day operations are overseen by a seven-member board consisting of three independent directors and an independent chair.
Zhao faced legal consequences last year after pleading guilty to violations of US money laundering statutes. He paid a $50 million penalty and served nearly four months in custody. Teng stressed the importance of strong governance and current coordination between management and the board amid the regulatory and market pressures borne by Binance.
For investors, the episode reinforces familiar risk-management imperatives. Allocations require attention to leverage, time horizon and liquidity. The current slump has highlighted how quickly sentiment can transition and how interconnected modern financial markets are.
Teng framed the recent movement as part of an extensive recalibration across asset classes.
Also Read: Bitwise Predicts ETF Boom as Crypto Faces Short-Term Slump Ahead
