Binance founder Changpeng "CZ" Zhao has identified several potential factors contributing to recent cryptocurrency market declines, pointing to the Anthropic IPO scheduled for this week as a possible driver of capital outflows from crypto assets.
In a social media post, Zhao noted that no single cause could definitively explain the price decline but outlined potential contributors. He cited the Anthropic IPO as a key factor, suggesting that investors may be redirecting capital from cryptocurrency holdings to the public offering.
Zhao referenced commentary from Strive CEO Matt Cole, who drew parallels between the current downturn and a previous crypto crash during the SpaceX IPO earlier this year. Cole observed that Bitcoin fell 19% ahead of the SpaceX listing and has declined 18% in anticipation of the Anthropic IPO.
The Anthropic IPO is generating substantial demand, with the company seeking to raise up to $90 billion and shares receiving subscriptions six times oversubscribed. The stock is expected to list on the Nasdaq this week.
Zhao also attributed market pressure to ETF outflows, security concerns related to a recent Binance hack, October's inflation data, and political uncertainty. He noted that midterm election results have raised concerns about potential stricter U.S. cryptocurrency policy.
The Binance founder explicitly denied rumors that his exchange was responsible for selling pressure in the market. "No, Binance did not sell crypto," he stated, adding that he has been personally accumulating assets by converting stablecoins to other cryptocurrency holdings.
Bitcoin traded as low as $62,500 on the day but rebounded to above $64,000. The cryptocurrency has declined more than 14% over the past week and more than 20% over the past month, according to market data.
