CZ: The crypto market downturn was caused by a combination of factors, including capital flows into AI, geopolitical tensions, and a four-year cycle.

According to Mars Finance, on June 27th, Binance founder CZ stated that the sharp decline in the crypto market in the first half of 2026 has no single cause. Geopolitical tensions, investors shifting funds to AI, and the typical four-year crypto cycle may all contribute to the continued decline of Bitcoin and other crypto assets. Bitcoin reached an all-time high of over $126,000 last October, and has since fallen by about 50%. At the beginning of this year, Bitcoin opened near $89,000, briefly rising slightly above $96,000, before falling to around $60,000. In the long term, the crypto industry will continue to grow, and demand for fintech will increase as transaction volume continues to rise; therefore, he is not worried about the industry itself or short-term price fluctuations. He stated that emerging industries such as AI are absorbing "hot money" from the crypto industry, but this could be a positive factor in the long run. Regarding prediction markets, CZ said that the rapid growth of prediction markets as tools for price discovery and liquidity is a good thing for the public. Regarding regulation, CZ stated that individual bills such as the Clarity Act (Digital Asset Markets Clarity Act) are important but tactical matters and will not determine the long-term growth of the crypto industry. He hopes the Clarity Act will pass and believes that if related legislation is delayed in the US, other countries may take the lead in formulating rules. CZ also stated that if the Democratic Party regains control of at least one house of Congress after the midterm elections, it may scrutinize Trump's support for the crypto industry and his pardons for crypto executives. CZ stated that he has "nothing to hide" and is willing to provide information if requested. When discussing political implications, CZ said he tries to stay away from US politics but believes that any anti-crypto activists are likely to lose a significant number of votes now.