diversion

According to CoinDesk, Binance founder Zhao Changpeng stated that the significant decline in the crypto market in the first half of 2026 does not have a single cause. Geopolitical tensions, investors shifting funds to AI, and the typical four-year cycle of crypto may collectively lead to the continued decline of Bitcoin and other crypto assets. Bitcoin reached a historical high of over $126,000 last October and has since fallen by about 50%. At the beginning of this year, Bitcoin opened near $89,000, briefly rose to just above $96,000, and then dropped to around $60,000.In the long term, the crypto industry will continue to develop, and the demand for fintech will increase as the number of transactions continues to rise, so they are not concerned about the industry itself or short-term price fluctuations. They stated that emerging industries like AI are absorbing "hot money" from the crypto sector, but in the long run, this could be a positive factor. When discussing prediction markets, Zhao Changpeng mentioned that the rapid growth of prediction markets as tools for price discovery and liquidity is a good thing for the public.Regarding regulation, Zhao Changpeng stated that separate bills like the U.S. Clarity Act are important but more tactical matters that will not determine the long-term growth of the crypto industry. He hopes the Clarity Act can pass and believes that if U.S. legislation is delayed, other countries may take the lead in advancing rule-making.Zhao Changpeng also mentioned that if the U.S. Democratic Party regains control of at least one chamber of Congress after the midterm elections, there may be a review of Trump's support for the crypto industry and his pardons for crypto executives. Zhao Changpeng stated he "has nothing to hide" and is willing to cooperate if relevant parties seek information. When discussing political influence, Zhao Changpeng said he tries to stay away from U.S. politics but believes that any anti-crypto individuals may now lose a significant number of votes.

Binance Research stated that the recent weakening of the cryptocurrency market may not be due to the cryptocurrency assets themselves, but rather due to the high concentration of funds in the U.S. stock market. It pointed out that the CBOE Discrete Index rose to 42, the third highest in history, reflecting the concentration of funds within the S&P 500 index towards a few popular themes, which has marginalized Bitcoin.

ChainCatcher message, in response to Binance's recent rapid listing frequency and the bulk introduction of large-cap VC projects to the market, which has led to liquidity issues, Binance co-founder He Yi stated that the crypto market is a free market where liquidity and trading volume are shared among all trading platforms. Even if Binance does not list new projects, these projects still exist, and funds will be diverted to the entire industry.In addition to the unlocking of VC-invested projects, meme coins, on-chain shitcoins, yield farming, and Ponzi schemes will also divert liquidity. After the approval of ETFs, traditional financial market funds will also flow directly into the crypto space.She pointed out that some VCs do indeed lead to inflated prices, but VCs generally have a 7-year lock-up period, with the unlocking period usually one year after the TGE, so many VCs are also going bankrupt. Projects that secure large financing have more opportunities to navigate through the bubble cycle, but the price and governance model are determined by the project parties, which requires in-depth analysis.He Yi also mentioned that the rise of DeFi has increased market liquidity and freedom, making it more difficult for CEXs to set rules, which is precisely the charm of the free market in the crypto space. She reminded everyone to do their own research (DYOR).