Bitcoin Market Crash Fall Wasnt Unique To Crypto: Binance CEO

Binance CEO Richard Teng says crypto’s recent volatility mirrors broader market conditions amid global deleveraging.

Bitcoin’s sharp 21% decline over the past month may have spooked retail traders, but Binance’s CEO Richard Teng says there’s no need for panic. On Friday, November 21, Teng spoke at a media roundtable in Sydney, where he highlighted that the decline is not unique to crypto.

“As with any asset class, there are always different cycles and volatility. What you’re seeing is not only happening to crypto prices,” Richard Teng, Binance.

Bitcoin (BTC) is currently trading at $84,997, down sharply from its all-time high of $126,198 in early October. The likely reason for the drop is in macro conditions. Low employment figures and rising inflation are contributing to uncertainty.

At the same time, it remains unlikely that the Federal Reserve will lower interest rates this year. These macro conditions are putting pressure on all risk assets, including crypto.

Teng also emphasized that Bitcoin remains up more than 100% year-to-date. At the same time, institutions like BlackRock are increasingly active in the space, even launching crypto products. For this reason, short-term corrections are healthy for the industry, he added.

“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. “At this point in time, there’s a bit of risk (off) and deleveraging happening as well.”

Teng also stated that Binance has not yet decided whether it will take back its founder, Changpeng Zhao, now that U.S. President Donald Trump pardoned him.