Zhao Says Crypto Market Correction Is Normal Four-Year Cycle

Binance founder Changpeng Zhao says the current crypto market correction is within a normal four-year cycle. He pointed out that a decline of about 50% in the current cycle is not unusual compared with pullbacks of as much as 80% in previous cycles.

According to Zhao, Bitcoin's price has still increased fivefold since four years ago and each cycle's low point has been higher than the one before it. He maintained that he has always taken a long-term view on the market.

The Binance founder attributed the shift in the US government's stance as the main reason for this four-year cycle differing from earlier ones. The US is now actively pushing to build a regulatory framework, which is influencing policy in other countries and contributing to the growth of spot exchange-traded funds, stablecoins, and real-world asset tokenization.

Zhao also cited increased inflows from institutional investors as factors strengthening the industry's foundation, saying that the industry's fundamentals have improved significantly compared with past cycles.