Binance: The crypto market decline is normal
Richard Teng, the CEO of Binance, confirmed that Bitcoin's volatility resembles that of traditional markets despite its 35% drop, indicating that the decline is due to reduced leverage and a lack of risk appetite, which are global trends.
Bitcoin is currently trading above $82,000 (down from $126,000 on October 6), with the total market capitalization of cryptocurrencies falling to $2.84 trillion (from $4.28 trillion).
Despite this, Bitcoin's performance remains strong compared to 2024, and stability is considered a healthy period for the market. However, the extent of the similarities in volatility raises questions, as Bitcoin's annual volatility exceeds 50% compared to 15% for the S&P 500 index, but is lower than some technology companies like Tesla (65%) and AMD (73%).
The chart below compares the relative changes in Bitcoin prices, Tesla stock (as an example of a technology company), AMD stock (a chip company), and the S&P 500 index during 2024.
