CZ Says No Single Reason Explains Crypto’s Rough 2026 Decline

Binance founder Changpeng “CZ” Zhao says crypto’s brutal first half of 2026 can’t be pinned on one factor. He told geopolitical tension, money rotating into AI, and the typical four year crypto cycle are all playing a role. Bitcoin opened the year near $89,000, climbed past $96,000, then dropped to around $60,000, down roughly 50% from its October 2025 high above $126,000.

Despite the slump, CZ stays bullish long-term. “Over the long run, the industry will develop,” he said, adding rising demand for financial tech will keep fueling growth. He also defended prediction markets, saying speculation provides useful liquidity even with their gambling-like elements.

CLARITY Act And US Politics

CZ called the CLARITY Act a “small, tactical” matter that won’t shape crypto’s bigger trajectory, though he hopes it passes so other countries follow the US lead, similar to the GENIUS Act. He acknowledged Democrats may scrutinize Trump’s crypto pardons, including his own, if they retake Congress, but said Binance has “nothing to hide.” CZ said he’s staying out of US elections but predicted anti-crypto politicians will lose votes.