Richard Teng, the CEO of Binance, recently remarked on Bitcoin’s fluctuations, suggesting they mirror the trends observed in broader markets. He stated that Bitcoin’s current decline is indicative of a risk-off approach among investors and aligns with the volatility typical among major asset classes.
In a media gathering held in Sydney, Teng pointed out that various asset classes experience different cycles, emphasizing that the fluctuations in cryptocurrency are not isolated. He said, ‘What you’re seeing is not only happening to crypto prices.’
As of now, Bitcoin is trading above $82,000, showing a decline of nearly 35% from its peak on October 6, when it surpassed $126,000. Data from CoinMarketCap indicates that the cryptocurrency market capitalization is around $2.84 trillion, down from its historical high of $4.28 trillion.
Bitcoin’s Price Chart
Bitcoin’s price chart
Source: CoinMarketCap
Teng highlighted that despite the recent downturn, Bitcoin is still trading at more than double its value from 2024, stating, ‘Over the past 1.5 years, the crypto sector has performed very, very well, so it’s not unexpected that people do take profit.’
‘Any consolidation is actually healthy for the industry, for the industry to take a breather, find its feet.’
When discussing Bitcoin’s volatility in relation to traditional markets, Teng acknowledged that his perspective may contrast with general belief. Recent data shows that the 60-day volatility of BTC-USD this year has fluctuated between 1% and nearly 2.44%. Research from 21Shares reveals Bitcoin’s annualized volatility peaked at 181% in 2013 but has decreased to as low as 23% in recent times.
Amid the turbulent markets, Bitcoin’s volatility remains substantial, with figures currently showing it exceeds 50%, whereas the S&P 500 is around 15%.
For comparison, several tech stocks exhibit greater volatility, such as Tesla and AMD, which stand at over 65% and 73% respectively.
