Binance founder Changpeng "CZ" Zhao has pinpointed several factors behind the steep decline in cryptocurrency markets in 2026.
In an exclusive interview, Zhao said geopolitical tensions, investors shifting capital to artificial intelligence firms, and the typical four-year crypto market cycle are all contributing to the extended downturn.
Bitcoin, the world's largest cryptocurrency, has fallen roughly 50% since its all-time high near $126,000 last October. Zhao, whose personal wealth is heavily tied to the BNB token, maintains a long-term bullish stance on the industry's growth.
"Over the long run, the industry will develop," Zhao stated. "There's going to be more and more demand for financial technologies."
He characterized the movement of "hot money" from crypto into new sectors like AI as a positive long-term development. On U.S. policy, Zhao suggested that while pending legislation like the Clarity Act is important, it is not critical to the industry's long-term trajectory.
He noted that other countries are advancing their own crypto regulations, and the U.S. must remain competitive to lead. Regarding potential political scrutiny from a Democratic Congress, Zhao said he is ready to cooperate. "There will be more scrutiny, more inquiries, more clarity," he said. "We're very happy to provide information."
Though he tries to stay removed from direct U.S. political involvement, Zhao observed that crypto advocates represent a significant voting bloc. "Anybody who's anti-crypto now will probably lose quite a lot of votes," he commented.