Binance CEO Drops SHOCKING Truth About Bitcoin's Wild Swings—Are You Ready for What's Next?

SYDNEY (Reuters) - In a recent media roundtable, Binance Chief Executive Richard Teng attributed the significant decline in Bitcoin's value over the past month to a broader trend of investors deleveraging their cryptocurrency holdings and exhibiting risk aversion. Bitcoin, the world’s most valuable cryptocurrency, has plummeted by 21.2% in November alone, contributing to a total loss of 23.2% over the past three months. With these trends, there is an increasing likelihood that Bitcoin will finish the year below $90,000, a stark contrast to its all-time high of over $126,000 reached in early October.

Teng noted that the current downturn is not unique to cryptocurrencies, stating, “As with any asset class, there are always different cycles and volatility. What you’re seeing is not only happening to crypto prices.” He emphasized that the market is currently experiencing a phase of reduced risk appetite and deleveraging.

This week's global market sell-off has been fueled by concerns surrounding an AI-led valuation bubble. Despite positive earnings reports from Nvidia Corp, investor worries have persisted. Teng remarked that while Bitcoin has faced sharp declines, it is still trading at more than double its level in 2024, when significant institutions like BlackRock began to launch crypto investments and products.

"Over the past 1.5 years, the crypto sector has performed very, very well, so it's not unexpected that people do take profit," Teng explained. He characterized any consolidation within the market as a healthy step for the industry, allowing it to "take a breather" and find its footing.

In a notable departure from the spotlight, Teng opted not to comment on whether Binance founder Changpeng Zhao, who was recently pardoned by U.S. President Donald Trump in October, would return to the exchange. Zhao, a Canadian citizen originally from China, had faced legal repercussions, including a $50 million fine and nearly four months in prison after pleading guilty to violating U.S. money laundering laws. He was replaced by Teng as chief executive in 2023.

The current volatility in Bitcoin and the wider cryptocurrency market underscores broader economic uncertainties and shifting investor sentiments. As the market grapples with these challenges, analysts and investors alike will be watching closely to see how these dynamics evolve in the coming weeks and months.