CZ: Crypto market weakness in 2026 may be driven by AI capital diversion, cycle resonance, and other factors

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

CZ stated that despite short-term price pressure, the long-term trend of the industry will continue to grow. He believes that as global demand for transaction and financial technology increases, the scale of the crypto industry will still expand. Currently, "emerging sectors 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 United States may push for 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 worldwide are still accelerating the development of digital asset regulatory frameworks. (CoinD)