Sydney, Australia — Binance CEO Richard Teng said on Friday that Bitcoin’s sharp drop in the past month was the result of investors deleveraging cryptocurrency holdings and risk aversion in line with that seen in most major asset classes.
Bitcoin, the world’s most valuable cryptocurrency, has fallen 21.2% in November, raising losses over the past three months to 23.2% as chances increase that it will end the year below $90,000.
The fall comes after Bitcoin hit a record peak above $126,000 in early October.
“As with any asset class, there are always different cycles and volatility. What you’re seeing is not only happening to crypto prices,” Teng said at a media roundtable in Sydney on Friday.
“At this point in time, there’s a bit of risk [off behaviour] and deleveraging happening as well.”
Global markets sold off this week, with investors rattled by an AI-led valuation bubble and the possibility that it could burst. So far, better-than-expected earnings from Nvidia have failed to quell those worries.
Teng said despite the decline, Bitcoin was trading at more than double its level in 2024, when institutions such as BlackRock began launching 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 said.
“Any consolidation is actually healthy for the industry, for the industry to take a breather and find its feet.”
Teng declined to comment on whether Binance founder Changpeng Zhao would return to the exchange after he was pardoned by US President Donald Trump in October.
Zhao, a citizen of Canada who was born in China, paid a $50m fine and served nearly four months in prison last year after pleading guilty to violating US money-laundering laws.
Zhao was replaced by Teng in 2023 as CEO.
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