Bitcoin Falls 50% From October Peak as Binance Founder Cites Multiple Factors

Bitcoin has fallen roughly 50% from its October peak above $126,000 and now trades near $60,000. Binance founder Changpeng Zhao said the decline stems from several factors rather than a single cause.

Bitcoin opened 2026 near $89,000, rose above $96,000, then dropped to the current level near $60,000, CoinDesk reported. Zhao noted that the exchange's performance is closely tied to bitcoin's price.

Zhao pointed to competition from AI investments, ongoing geopolitical tensions, and the typical four-year crypto market cycle. He said funds that might have gone into crypto have instead flowed into AI companies, though he expects this shift to benefit crypto over time.

Zhao said the failure of the Digital Asset Market Clarity Act would not prevent further U.S. crypto regulation because other bills remain under discussion and other countries continue to adopt rules. He added that the United States is likely to retain a leading role in setting standards even if the Clarity Act is delayed.

Zhao said he expects Democrats to increase scrutiny of crypto policy after the November midterm elections if they gain control of at least one chamber of Congress. He stated that he would cooperate with any inquiries and has nothing to hide.