Binance CEO Richard Teng has stated that the recent 35% drop in Bitcoin's price is a normal deleveraging event occurring across all markets, rather than a crypto-specific crisis. Speaking in Sydney, Teng explained that the decline from Bitcoin's peak of $126,000 in October to approximately $82,000 is consistent with risk-off sentiment seen in broader financial markets.
Teng emphasized that Bitcoin remains more than double its value from the previous year, suggesting that the current pullback is a healthy part of the market cycle, allowing for profit-taking and consolidation. "People took profits, markets consolidate, that's how it works," he said, adding that the industry needs time to stabilize and find a new footing.
Crypto Volatility Now Aligns with Traditional Assets
Addressing the perception of extreme crypto volatility, Teng argued that Bitcoin's price swings are now comparable to many other major asset classes. While Bitcoin's annual volatility is around 50%, this is significantly lower than the 181% recorded in 2013. In contrast, some major technology stocks, such as Tesla (65% volatility), AMD (73% volatility), and Super Micro (73% volatility), are currently exhibiting higher levels of price fluctuation.
Furthermore, the broader market experienced its own turbulence, with the S&P 500's volatility briefly surpassing Bitcoin's during recent market turmoil.
Teng concluded that cryptocurrency is no longer an outlier in terms of volatility and is now moving in tandem with the broader financial landscape. He suggested that the current period of consolidation could lay the groundwork for future upward price movements.