Published by Global Banking & Finance Review®
Posted on November 21, 2025
2 min readLast updated: January 20, 2026
Add as preferred source on GoogleBinance CEO Richard Teng attributes bitcoin's volatility to investor deleveraging, aligning with trends in other asset classes.
By Scott Murdoch
SYDNEY (Reuters) -Binance Chief Executive Richard Teng said on Friday bitcoin's sharp drop in the past month was the result of investors deleveraging cryptocurrency holdings and risk aversion in line with that seen in most major asset classes.
Bitcoin, the world's most valuable cryptocurrency, has fallen 21.2% in November, raising losses over the past three months to 23.2% as chances increase that it will end the year below $90,000.
The fall comes after bitcoin hit an all-time peak above $126,000 in early October.
"As with any asset class, there are always different cycles and volatility. What you're seeing is not only happening to crypto prices," Teng said at a media roundtable in Sydney on Friday.
"At this point in time, there's a bit of risk (off) and deleveraging happening as well."
Global markets sold off this week, with investors rattled by an AI-led valuation bubble and the possibility that it could burst. So far, better-than-expected earnings from Nvidia Corp have failed to quell those worries. [MKTS/GLOB]
Teng said despite the decline, bitcoin is trading at more than double its level in 2024, when institutions like BlackRock began launching crypto investments and products.
"Over the past 1.5 years, the crypto sector has performed very, very well, so it's not unexpected that people do take profit," Teng said.
"Any consolidation is actually healthy for the industry, for the industry to take a breather, find its feet."
Teng declined to comment on whether Binance founder Changpeng Zhao would return to the exchange after he was pardoned by U.S. President Donald Trump in October.
Zhao, a citizen of Canada who was born in China, paid a $50 million fine and served nearly four months in prison last year after pleading guilty to violating U.S. money laundering laws.
Zhao was replaced by Teng in 2023 as chief executive.
(Reporting by Scott Murdoch; Editing by Tom Hogue)
Bitcoin is a decentralized digital currency that allows people to send or receive money over the internet without the need for a central authority or bank.
Volatility refers to the degree of variation in the price of a financial asset over time, indicating the level of risk associated with that asset.
Deleveraging is the process of reducing debt by paying off existing liabilities, often leading to a decrease in borrowing and spending.
Risk aversion is a financial concept where investors prefer to avoid risk and choose safer investments, even if it means potentially lower returns.
A media roundtable is a discussion format where journalists and experts gather to discuss specific topics, allowing for an exchange of ideas and information.
Explore more articles in the Finance category
