The head of the leading crypto exchange Binance, Richard Teng, states that the current volatility in cryptocurrency prices corresponds to general market trends driven by the global trend of deleveraging. Summary Richard Teng, who leads Binance, notes that the decline in the crypto sphere is not an isolated event. Investors across all market segments are reassessing their risk assessments due to macroeconomic instability. Although trading volumes in the crypto market have noticeably decreased, no fundamental structural realignments or issues with fund availability have been recorded. The sharp 21% drop in Bitcoin’s price over the last month may have sowed panic among small investors, but according to Richard Teng, head of Binance, there is no strong cause for major concern yet. At a press conference in Sydney on Friday, November 21, Teng emphasized that this decline is not exclusive to the cryptocurrency space. “In any asset class, there are natural cycles and periods of high volatility. What we are observing now is not limited only to the dynamics of cryptocurrency prices,” stated Richard Teng (Binance). At the time of publication, Bitcoin is trading at $84,997, significantly below its peak of $126,198 recorded in early October. The main catalyst for the decline appears to be macroeconomic factors: weak employment data and rising inflation contribute to the general state of uncertainty. Bitcoin BTC -1.49% Bitcoin Meanwhile, it is unlikely that the Federal Reserve will decide to lower interest rates this year. These economic conditions are putting pressure on all higher-risk asset classes, including digital currencies. You might be interested in: US Lawmakers Demand Clarification on Circumstances of Changpeng Zhao’s Pardon by Trump Bitcoin Remains Up Over 100% Since the Start of 2024 Teng also pointed out that Bitcoin has still demonstrated a gain of over 100% since the beginning of the year. Moreover, major financial players like BlackRock are showing increased activity in this area, even launching their own crypto products. Therefore, short-term pullbacks are beneficial for the industry’s health, he added. “The crypto sector has performed extremely well over the last year and a half, so it is quite logical that profit-taking is occurring now,” Teng commented on the situation. “There is currently some (reduction in) risk and reduction in the debt burden.” Teng also reported that Binance has not yet made a final decision regarding the return of its founder, Changpeng Zhao, after US President Donald Trump granted him a pardon.
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