Binance founder Changpeng “CZ” Zhao said the crypto market’s roughly 50% slide over the past year is the result of multiple overlapping factors, not a single trigger.
In an interview with CoinDesk, CZ pointed to geopolitical instability, a shift in investor capital toward artificial intelligence, and the industry’s recurring four-year cycle as key drivers behind the prolonged downturn in 2026.
Bitcoin has been under pressure since last year, beginning 2026 near $89,000 and briefly topping $96,000 before retreating to around $60,000. The decline is even steeper on a 12-month basis, with the asset down about 50% from its peak above $126,000 last October.
Despite the correction, CZ expressed confidence in crypto’s long-term growth. While noting that much of his personal wealth is tied to the BNB token and Binance’s performance, he said his outlook is based on over a decade of experience in the sector.
He argued that rising global transaction volumes will continue to drive demand for financial technology, supporting the expansion of the crypto industry over time, regardless of near-term volatility.
CZ also described the flow of capital into emerging sectors like AI as a natural part of innovation cycles, ultimately benefiting the broader tech landscape.
On prediction markets, he said their rapid expansion could improve pricing accuracy and liquidity. Although speculation is a factor, he emphasized that it plays a crucial role in all financial markets by supporting liquidity.
Regarding regulation, CZ said proposed U.S. legislation such as the Digital Asset Market Clarity Act is important but unlikely to determine the industry’s long-term trajectory. He expects the U.S. to remain a key regulatory force, even as other countries advance their own frameworks.
He added that a potential shift in political power after the upcoming midterm elections could bring increased scrutiny of pro-crypto policies and figures, including former President Donald Trump. CZ, who received a presidential pardon, said he is willing to cooperate with any investigations.
While he keeps a distance from U.S. politics, CZ acknowledged that election outcomes could shape the regulatory environment. He also suggested that crypto users are becoming an increasingly influential voting bloc, warning that anti-crypto positions could carry political consequences.
