CZ: Crypto Market Weakness in 2026 Driven by AI Capital Rotation, Cycle Resonance, and Other Factors

Odaily reported that CZ stated in an interview that the significant downturn in the crypto market during the first half of 2026 cannot be explained by a single factor. The overall correction of approximately 50% is likely the result of multiple macro and structural factors. Geopolitical tensions, capital flowing from crypto assets into the AI sector, and the traditional four-year crypto market cycle are jointly suppressing market performance. Notably, Bitcoin has seen a clear decline from its all-time high, falling from around $126,000 last year to approximately $60,000 currently.

CZ said that despite short-term price pressure, the industry's long-term trend will continue to grow. He believes that as global demand for trading and financial technology increases, the scale of the crypto industry will still expand. Currently, "emerging industries like AI are absorbing hot money from the market," but this could be a positive phenomenon in the long run. Additionally, he is optimistic about the development of prediction markets, believing they help improve price discovery efficiency and market liquidity.

On the regulatory front, CZ believes the US may push forward legislative progress like the "Clarity Act" for digital assets before the end of the year, but these policies are "tactical adjustments" and will not change the long-term growth trajectory of the crypto industry. He also pointed out that countries around the world are still accelerating the development of digital asset regulatory frameworks. (CoinD)