CZ says AI and market cycle weigh on crypto
Share
- Former Binance CEO Changpeng Zhao said Bitcoin's 2026 decline reflects several factors rather than a single cause.
- Bitcoin has fallen from above US$126,000 in October 2025 to around US$60,000 as investors shift capital towards artificial intelligence and other sectors.
- CZ said he remains optimistic about crypto's long-term growth despite near-term market weakness.
Changpeng Zhao (CZ) said Bitcoin (CRYPTO:BTC) and the broader cryptocurrency market have declined in 2026 because of a combination of geopolitical tensions, capital flowing into artificial intelligence and the sector's historical four-year market cycle.
Bitcoin has dropped from its October 2025 peak above US$126,000 to around US$60,000 after opening 2026 near US$89,000 and briefly trading above US$96,000, prompting debate over whether the current downturn follows previous market cycles.
“Over the long run, the industry will develop,” said former Binance CEO Changpeng Zhao.
CZ said capital has temporarily rotated into AI-related sectors including infrastructure, semiconductor chips, cloud computing and robotics, while adding that he believes demand for financial technology and digital transactions will continue to support long-term crypto adoption.
He also said Bitcoin's historical four-year cycle remains one possible explanation for the market decline, although he noted that growing participation from spot exchange-traded funds, corporate treasury investors and derivatives markets may be changing the cryptocurrency's market structure.
CZ added that clearer United States cryptocurrency regulation, including measures such as the CLARITY Act, could support industry development over time, while also describing prediction markets as useful tools for price discovery and liquidity despite the presence of speculation.
At the time of reporting, Bitcoin price was $60,182.07.
