Binance CEO Richard Teng said on Friday that bitcoin’s recent sharp decline is largely due to investor deleveraging and a broader pullback from risk assets. He noted that this pattern mirrors the kind of risk aversion seen across many major asset classes.
Bitcoin, the world’s largest cryptocurrency, has dropped 21.2% so far in November. Losses over the past three months now total 23.2%, increasing the likelihood that the token ends the year below $90,000. This slide comes shortly after bitcoin reached a record high above $126,000 in early October.
Teng said that volatility is normal across all markets. “As with any asset class, there are always cycles and periods of volatility. What you’re seeing is not unique to crypto,” he said during a media roundtable in Sydney. He added that the market is experiencing a period of risk-off sentiment and leverage reduction.
Global markets also fell this week as investors grew concerned about stretched valuations in the artificial intelligence sector. Fears of an AI-driven bubble weighed on sentiment, even after Nvidia reported stronger-than-expected earnings.
Despite the downturn, Teng highlighted that bitcoin is still trading at more than double its level in 2024. That was when major institutions such as BlackRock began introducing new crypto investment products. He said the strong performance over the past year and a half naturally encouraged some investors to take profit. According to Teng, consolidation is “healthy for the industry” and gives the market time to stabilize.
Teng did not comment on whether Binance founder Changpeng Zhao might return to the company. Zhao was pardoned by U.S. President Donald Trump in October after paying a $50 million fine and serving nearly four months in prison for violating U.S. anti–money laundering laws. He was replaced by Teng as CEO in 2023.
