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

Odaily reported that during an interview, CZ stated that the significant decline in the crypto market in the first half of 2026 cannot be attributed to a single factor. The overall correction of approximately 50% may be caused by a combination of multiple macroeconomic and structural factors. Geopolitical tensions, capital rotation from crypto assets to the artificial intelligence sector, and the traditional four-year crypto market cycle are all jointly suppressing market performance. Bitcoin has notably retreated from its all-time high, dropping from around $126,000 last year to approximately $60,000 currently.

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 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. Furthermore, 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 that the United States may push forward legislative progress such as the "Digital Asset Market Clarity Act" 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 formulation of digital asset regulatory frameworks. (CoinDesk)