Richard Teng noted that the notable drop in bitcoin over the past month resulted from investors reducing their cryptocurrency holdings and showing risk aversion akin to patterns seen in most major asset classes. The leading cryptocurrency by market capitalization has experienced a decline of 21.2 percent in November, bringing its total losses over the last three months to 23.2 percent. As the year comes to an end, the chances of it concluding under $90,000 are increasing. The decline comes after bitcoin hit an all-time high of over $126,000 in early October.
“As with any asset category, various cycles and fluctuations are consistently evident. What you’re observing is not limited to cryptocurrency values,” Teng remarked. “At present, there is a noticeable sense of caution and continued reduction of leverage.” Bitcoin reaches a record peak as the ‘debasement’ strategy sparks a risk rally. Global markets faced a downturn this week, as investors reacted to worries about an AI-driven valuation bubble and the risk of it collapsing. Despite the better-than-expected earnings, concerns continue to loom large.
Teng observed that despite the recent decline, bitcoin remains valued at more than double what it was in 2024, a year marked by significant institutional involvement in crypto investments and products. “In the last year and a half, the cryptocurrency market has seen remarkable success, so it’s understandable that people are cashing in,” Teng remarked. “Any consolidation is genuinely beneficial for the industry, providing an opportunity to pause and regain stability.”
Teng chose not to share any thoughts on the possible return of Binance founder Changpeng Zhao to the exchange after his pardon by U.S. President Donald Trump in October. Zhao encountered a significant $50 million penalty and endured almost four months in prison last year after acknowledging his wrongdoing in violating U.S. money laundering laws.