Binance CEO Richard Teng said the recent decline in Bitcoin is linked to deleveraging and increased investor caution, trends seen across many asset classes. In November, the cryptocurrency fell more than 21% after reaching an all-time high above $126,000 in October.

He noted that global markets are also experiencing sell-offs amid concerns about a potential AI-driven valuation bubble despite strong Nvidia earnings. Even so, Bitcoin still trades at more than double its 2024 levels, when major institutions began expanding into crypto.

According to Teng, profit-taking after a long period of growth is normal, and the current consolidation is healthy for the industry. He stressed that cycles of rises and corrections are natural for all financial instruments, including cryptocurrencies.

Teng declined to comment on whether Changpeng Zhao could return after receiving a pardon. Zhao paid a $50 million fine, served nearly four months in prison, and handed over the CEO role to Teng in 2023.