Crypto market is seeing a ‘tactical retreat, not a reversal’ — Binance CEO

The crypto market’s drop after US President Donald Trump confirmed that tariffs on Canada and Mexico are going forward is only short-term and likely won’t last long, says Binance CEO Richard Teng.

“It’s important to view this as a tactical retreat, not a reversal,” Teng said in a Feb. 25 X post. “Crypto has been here before and bounced back even stronger.”

Crypto usually rebounds after macroeconomic turbulence

Teng said crypto markets tend to bounce back strongly after volatility caused by events in the broader economy.

“History has shown that crypto markets react to macroeconomic shifts much like traditional assets, but they also bounce back with remarkable resilience,” Teng said.

“We’re seeing a short-term tactical retreat, not a structural decline,” he added.

Teng’s comments come as Bitcoin (BTC) dropped below $90,000 on Feb. 25 for the first time since November after Trump said a day earlier that his planned 25% tariffs on Canada and Mexico “are going forward on time, on schedule.” He had agreed to pause them for 30 days earlier this month.

Meanwhile, the market sentiment-tracking Crypto Fear & Greed Index is at a score of 21 out of a total of 100 on Feb. 26, with the market showing “Extreme Fear.” It’s dropped 28 points over the past two days, having been at a “Neutral” score of 29 on Feb. 24.

Meanwhile, Nansen’s Risk Barometer — another crypto sentiment indicator — turned “Risk-off” after being “Neutral” since mid-November. 

Nansen said it wants more clarity on Trump’s tariff policies and reassurance that US growth isn’t slowing as much as recent consumer surveys suggest before it shifts back into risk assets.

MN Trading founder Michaël van de Poppe said in a Feb. 25 X post that “max peak in negative sentiment where I’ve received a lot of ‘panic’ messages is usually a great sign.”

Crypto ETF filings grow, fundamentals getting stronger

However, Binance’s Teng said the crypto market’s recent turbulence is mainly due to the US Federal Reserve taking a more “cautious approach” to rate cuts. 

Related: Bitcoin tumbles under $90K amid ETF sell-off, mounting liquidations

A rate cut is often seen as bullish for crypto, as lower returns on traditional assets like bonds and term deposits make investors more willing to explore riskier assets like crypto.

Teng said the strong demand for crypto ETFs and ongoing applications for new launches in the US is a positive sign. 

Since Gary Gensler stepped down as Securities and Exchange Commission Chair on Jan. 20, US asset managers have filed for ETFs tied to assets like XRP (XRP), Cardano (ADA), Solana (SOL) and Dogecoin (DOGE).

“The fundamental indicators of crypto’s strength are getting stronger,” Teng said.

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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.