Binance CEO Says Bitcoin Volatility Aligns with Customary Assets
SYDNEY,โค Oct 26 – Binance CEO Richard teng stated Thursday that recent price swings in Bitcoin are comparable to volatilityโค levels typically observed in conventional asset โขclasses.Teng‘s comments come as Bitcoin experienced a sharp decline this week,briefly falling below $60,000 before partially recovering.
The remarks aim to contextualize Bitcoin’sโ price fluctuations for investors and regulators, suggesting its behaviorโข is becoming more integratedโ with broader financial markets. This outlook is meaningful as Bitcoin seeks wider acceptanceโข and as regulatoryโฃ scrutiny intensifiesโข globally. increased volatility has historically been a barrierโข to institutional investment in cryptocurrencies, and Teng’s assessment could be interpretedโ as a signalโ that theโ asset is maturing.
Teng highlighted that whileโ Bitcoin’s โฃvolatility remains ample, it isn’t anomalous when viewed alongside equities, commodities, or other investment vehicles. He emphasized the importanceโข of a long-term investment horizonโค for โnavigating such fluctuations.
“Whatโข we’ve seen in โthe last few days is not unusual,” Teng said during a speech โฃatโค the โฃAustralian Financial Review summit in Sydney.”Ifโฃ you look at Bitcoin’s volatility relative to other asset classes, it’s actually in lineโ with many of them.”
The โprice of Bitcoin has seen significant gains this year, driven by factors including the launch โฃof spot Bitcoin exchange-traded funds (ETFs) โฃin the Unitedโข States and anticipation of the upcoming “halving” event, which โฃhistorically reduces โthe supply of โnew โขBitcoins. Though, profit-taking and macroeconomic headwinds have contributed to the recent downturn.