Binance Chief Executive Richard Teng says that bitcoin’s sharp fall in November 2025 reflects a broader trend of deleveraging and risk aversion across markets, rather than crypto-specific panic. Speaking at a media roundtable in Sydney, he noted that bitcoin’s volatility at this time is aligned with what other major asset classes are experiencing, underscoring that the crypto sector is not alone in its recent turbulence.

Bitcoin’s Correction in Broad Market Context

Bitcoin plunged about 21.2 percent over the course of November, by Teng’s account, contributing to a three‑month decline of more than 23 percent. The drop follows a blistering run earlier this year, when bitcoin surged past record levels above $126,000 in early October. Teng argues this pullback is largely being driven by investors reducing leverage and exiting riskier positions—not just in crypto but in traditional markets as well. He notes that in periods of macro uncertainty, “risk‑off” behavior tends to be widespread, and crypto is simply not immune.

Volatility, Cycles, and Institutional Adoption

Teng emphasized that fluctuations are part of any asset’s life cycle: “As with any asset class, there are always different cycles and volatility,” he said. He pointed to bitcoin’s long-term performance, noting that despite the recent drop, the cryptocurrency remains more than double its 2024 level—when major institutions such as BlackRock began ramping up their crypto exposure. That institutional demand, he argued, underpins a more mature market structure, and current consolidation should be viewed as a chance for the sector to stabilize and refresh.

Macro Shocks, AI Risk and Self‑Reflection

The sell-off comes amid rising broader-market volatility driven by fears of an AI-driven valuation bubble, according to Teng. Even strong earnings from major tech firms have failed to calm jitters, he said. Against this backdrop, investors are reassessing exposure to all high-growth assets, not just crypto. Teng suggested that this moment of risk aversion may force the crypto industry to re-evaluate its pace of growth, with potential benefits including a healthier market environment and more sustainable investor participation.

Looking forward, key indicators to watch include bitcoin’s trading level relative to its 2024 base, the pace of deleveraging in both crypto and traditional markets, and changes in institutional capital flows. Investors should also monitor macro risk factors—especially developments in AI valuations and interest-rate policy—that could reshape market sentiment. If the consolidation proves durable, it may lay the foundation for more stable, long-term growth in the crypto industry.