This is turning out to be a difficult year for the crypto market. Bitcoin, which had risen to above $126,000 by the end of 2025, is now trading close to around $60,000. After this sharp decline, investor concerns have grown, and everyone wants to know why it happened in the first place.
Binance founder Changpeng Zhao, known worldwide as CZ, says there isn’t just one reason for this decline. According to him, several factors have combined to put pressure on the crypto market.
According to CZ, investment in the field of artificial intelligence (AI) around the world is currently growing very rapidly. Many investors are pulling their money out of crypto and moving it into areas such as AI, chips, cloud computing, and other advanced technology sectors. As a result, new investment in the crypto market is slowing down.
In addition, rising political tensions between different countries and fears of war have also made investors more cautious. When global conditions are uncertain, people prefer to stay away from higher-risk investments, and the crypto market is also affected by this.
CZ also mentioned the famous four-year cycle of crypto. In the past, Bitcoin has gone through several phases of surges followed by major drops, so it’s possible that the current situation is also part of the same cycle. However, the market is different now because it also includes institutional investors, spot ETFs, and large companies.
Although current conditions are difficult, CZ is optimistic about the future. He believes that blockchain technology and the need for digital finance will continue to grow in the coming years, which could help the crypto industry regain strength.
In short, it wouldn’t be right to link the current bearish phase to just one event. Investment in AI, global tensions, the market cycle, and changing investor behavior together are influencing the crypto market. However, if technological progress continues at the same pace, the outlook for crypto in the long term still appears positive.
