Binance CEO: Bitcoin is no more volatile than traditional financial assets

Bitcoin (BTC) volatility is in line with most major asset classes, which also go through various market cycles, according to Binance CEO Richard Teng, according to Reuters.

“What you are seeing is not just happening with cryptocurrencies,” he assured.

He believes the latest decline in the leading cryptocurrency was caused by investors reducing leverage on open positions to avoid risks.

On the topic: Bitcoin tested $82,000 on profit-taking in Nvidia shares and growing doubts about a Fed rate cut

Bitcoin price chart for the year. Source: CoinMarketCap.

At the time of writing, digital gold is trading just below $82,000. The total crypto market capitalization is $2.84 trillion, down 33.6% from its all-time high of $4.28 trillion.

Nothing supernatural

Bitcoin has retreated about 35% from its peak, but is still trading at double its 2024 levels.

“The crypto sector has performed very, very well over the past year and a half, so it's no surprise that people are taking profits,” Teng commented.

He also emphasized that any consolidation is a “useful” period for the crypto market, as it allows it to catch its breath and find new footing.

On the topic: Bitcoin will become a global currency, and USDT will disappear.

Bitcoin and TradFi

Compared to major asset classes, the leading cryptocurrency still underperforms. According to BiTBO, this year's 60-day volatility for BTC-USD has fluctuated between several short-term declines around 1% and peaks of 2.44%.

Furthermore, Bitcoin's historical volatility has been declining as mass adoption and liquidity increases. In 2013, it reached an all-time high of 181%. By the end of 2025, it had fallen to 23%.

Bitcoin/S&P 500 volatility chart. Source: 21Shares.

Also this year, the S&P 500's volatility briefly exceeded that of digital gold. This occurred during a period of abnormally high volatility in the TradFi markets, which subsequently subsided significantly.

At the time of writing, Bitcoin's annualized volatility exceeds 50%, while the S&P 500's is just over 15%.

Bitcoin's volatility appears high, but there are even more volatile assets in the big tech space. For example, AMD and Super Micro Computer have volatility of 73%, while Tesla has 65%. However, such figures are rare in traditional finance.