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Recent swings in Bitcoin volatility reflect a broader risk reset across global markets, according to Binance Chief Executive Richard Teng.
Summary
How does Binance see current Bitcoin volatility?
Richard Teng, speaking at a media roundtable in Sydney on Friday, said bitcoin’s sharp decline over the past month stems from investors deleveraging and turning more risk-averse, a pattern he argued mirrors moves in other major asset classes. However, he stressed that such price swings are typical for digital assets and traditional markets alike.
Bitcoin, the world’s most valuable cryptocurrency, has dropped 21.2% so far in November, extending losses over the past three months to 23.2% as the likelihood increases that it will finish the year below $90,000. Moreover, the retreat follows an all-time high above $126,000 reached in early October, underscoring the scale of the recent pullback.
“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. That said, he added that “at this point in time, there’s a bit of risk (off) and deleveraging happening as well,” framing the move as part of a broader crypto risk off phase.
What is driving the latest crypto market deleveraging?
The Binance chief noted that global markets have sold off this week, with investors spooked by fears that an AI-led valuation bubble could burst. However, even better-than-expected earnings from Nvidia Corp have so far failed to ease those concerns, keeping pressure on risk assets across equities and digital tokens.
Teng argued that, despite the decline, bitcoin is still trading at more than double its level in 2024, when large institutions such as BlackRock began rolling out more structured crypto investments and products. In his view, this wave of bitcoin institutional adoption has helped underpin the asset’s longer-term performance, even if short-term sentiment remains fragile.
“Over the past 1.5 years, the crypto sector has performed very, very well, so it’s not unexpected that people do take profit,” he said, pointing to widespread crypto profit taking after a strong multi-year run. Moreover, Teng described the current phase as a natural pause after a powerful rally rather than a structural breakdown.
Is this consolidation phase healthy for bitcoin and crypto?
Teng characterized the pullback as ultimately constructive. “Any consolidation is actually healthy for the industry, for the industry to take a breather, find its feet,” he said. However, he acknowledged that heightened bitcoin price decline headlines can unsettle newer market participants who have yet to experience extended drawdowns.
The executive added that, historically, Bitcoin volatility over time has moved in cycles, with periods of intense trading activity followed by quieter consolidation. In that context, he framed current market conditions as part of a familiar pattern rather than an unprecedented shock, aligning the latest moves with shifts seen in other risk assets.
What did Teng say about Binance leadership and Changpeng Zhao?
On governance, Teng declined to say whether Binance founder Changpeng Zhao might return to the exchange following his pardon by U.S. President Donald Trump in October. That said, he avoided commenting directly on any internal discussions or potential binance leadership update that could follow from the legal development.
Zhao, a Canadian citizen born in China, paid a $50 million fine and served nearly four months in prison last year after pleading guilty to violating U.S. money laundering laws. Moreover, he was formally replaced by Teng as chief executive in 2023, marking a significant transition in Binance CEO remarks and public-facing leadership.
The comments from Teng highlight how recent market turbulence, driven by deleveraging and wider risk aversion, is reshaping the narrative around Bitcoin volatility even as major institutions and new leadership continue to anchor the industry’s long-term trajectory.