Binance CEO: Bitcoin Slump Part of Broader Market Deleveraging

Binance Chief Executive Richard Teng stated on Friday that Bitcoin’s sharp drop over the past month is a result of investors deleveraging cryptocurrency holdings and a widespread risk-off sentiment, aligning with trends seen across most major asset classes.

The world’s most valuable cryptocurrency has tumbled 21.2% in November, bringing its losses over the past three months to 23.2%. This decline increases the likelihood that Bitcoin will end the year below $90,000, a significant pullback after it hit an all-time 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 during a media roundtable in Sydney. “At this point in time, there’s a bit of risk (off) and deleveraging happening as well.”

The comments come as global markets have sold off this week, with investors rattled by an AI-led valuation bubble and fears that it could burst. These concerns persist despite better-than-expected earnings from chipmaker Nvidia.