CZ: Encryption Market Weakness in 2026 May Be Jointly Driven by AI Fund Diversion, Cycle Resonance, and Other Factors

Odaily Odaily Planet Daily reports that CZ stated in an interview that the significant decline in the encryption market in the first half of 2026 cannot be explained by a single factor. The overall correction of approximately 50% may be jointly caused by multiple macro and structural factors. Geopolitical tensions, capital flowing from crypto assets to the artificial intelligence field, and the traditional four-year encryption market cycle are collectively suppressing market performance. Among them, Bitcoin has seen a notable decline from its all-time high, dropping from around $126,000 last year to its current level near $60,000.

CZ indicated that despite short-term price pressure, the long-term trend of the industry will continue to grow. He believes that as the demand for global trading and financial technology increases, the scale of the encryption industry will still expand. Currently, "emerging industries like AI are absorbing hot money from the market," which could be a positive phenomenon in the long run. Furthermore, he expressed optimism about the development of prediction markets, stating they help improve price discovery efficiency and market liquidity.

Regarding regulation, CZ believes the U.S. may push forward legislative progress such as the "Digital Asset Market Clarity Act" before the end of the year. However, these policies are "tactical adjustments" and will not change the long-term growth trajectory of the encryption industry. He also pointed out that countries around the world are still accelerating the establishment of digital asset regulatory frameworks. (CoinD)