Key Takeaways
- •Binance CEO Richard Teng asserts that Bitcoin's volatility is comparable to that of major asset classes.
- •Teng attributes Bitcoin's recent pullback to deleveraging and a general risk-off sentiment in the market.
- •Despite recent fluctuations, Bitcoin's value remains significantly higher than its 2024 trading levels.
Teng's Perspective on Bitcoin Volatility
Binance CEO Richard Teng has challenged the long-standing view that Bitcoin is uniquely volatile. During a media roundtable in Sydney, Teng argued that the cryptocurrency's recent price swings are consistent with patterns observed across major global markets. He explained that all asset classes experience cycles characterized by shifts in sentiment, liquidity, and investor risk appetite.
Binance Chief Executive Richard Teng said on Friday bitcoin’s sharp drop in the past month was the result of investors deleveraging cryptocurrency holdings and risk aversion in line with that seen in most major asset classes. pic.twitter.com/ae2ICDiw3f
— kwetey..I.N.D.H (@Mr_Qweit) November 21, 2025
Market Deleveraging Fuels Bitcoin's Pullback
Teng identified a broader trend of deleveraging and risk aversion among investors as the primary drivers behind Bitcoin's recent decline. He stated that traders reducing their leveraged positions significantly contributed to the speed and intensity of the pullback, a behavior that mirrors risk-off sentiment seen in equities, commodities, and other financial markets.
“At this point in time, there’s a bit of risk-off and deleveraging happening,”
Teng commented, emphasizing that this pressure is not confined to cryptocurrency markets. He further noted that despite the correction, Bitcoin's value remains more than double its 2024 trading levels, and the industry has seen strong performance over the past 18 months, leading some early investors to take profits.
Teng characterized the current consolidation as a healthy phase for the sector, allowing the market to pause after a period of extended upward momentum.
The Ongoing Volatility Debate
While Teng suggests Bitcoin's movements are comparable to traditional markets, this viewpoint contrasts with the widely held notion that crypto markets are inherently more volatile. Data from 2025 indicates that Bitcoin's 60-day volatility has fluctuated, with brief dips near 1% and peaks approaching 2.44%, levels that generally surpass those of most established asset classes.
Nevertheless, Teng maintains that the current market conditions reflect maturation rather than instability. He posits that as institutional adoption grows and liquidity deepens, Bitcoin's long-term volatility profile is expected to converge more closely with broader financial assets, even if short-term fluctuations persist.
In a related development, Binance has announced its full support for the transition of AI16Z into ELIZAOS, a new token ecosystem designed to power decentralized AI operations. This shift, part of the Alpha 2.0 platform upgrade, is a significant step towards achieving cross-chain interoperability and enhancing AI-driven blockchain functionality.