Binance founder Changpeng "CZ" Zhao said the crypto market’s decline in 2026 is driven by a shift of capital to AI firms, geopolitical tensions, and the industry’s four‑year cycle. He made the remarks in an interview with CoinDesk on June 27, 2026. Bitcoin fell from near $89,000 at the start of 2026 to about $60,000, a roughly 50% drop from its all‑time high of more than $126,000 in October 2025. Zhao said his net worth is largely tied to the BNB token, the native cryptocurrency of Binance. He said AI companies have attracted investment that might otherwise have gone to crypto. He expects this to be positive for the industry over time. He described prediction markets as a tool for price discovery and liquidity, noting that speculation is a common feature of all financial instruments. Regarding regulation, Zhao said the U.S. Digital Asset Market Clarity Act could become law by year‑end, though he characterized it as a tactical measure that will not determine long‑term growth. He also noted the stablecoin‑focused GENIUS Act and said the United States will continue to lead in crypto regulation as other jurisdictions adopt their own rules. Zhao acknowledged that a potential Democratic resurgence in Congress after the November midterms could increase scrutiny of the Trump administration’s pro‑crypto actions, including pardons of crypto executives, and said he would cooperate with any inquiries. He reiterated that despite short‑term volatility the industry will expand as transaction demand rises and that crypto remains an important sector for the United States.