SYDNEY, Nov 21 (Reuters) - Binance Chief Executive

Richard Teng said on Friday bitcoin's sharp drop in the past

month was the result of investors deleveraging cryptocurrency

holdings and risk aversion in line with that seen in most major

asset classes.

Bitcoin, the world's most valuable cryptocurrency, has

fallen 21.2% in November, raising losses over the past three

months to 23.2% as chances increase that it will end the year

below $90,000.

The fall comes after bitcoin hit an all-time peak above

$126,000 in early October.

"As with any asset class, there are always different cycles

and volatility. What you're seeing is not only happening to

crypto prices," Teng said at a media roundtable in Sydney on

Friday.

"At this point in time, there's a bit of risk (off) and

deleveraging happening as well."

Global markets sold off this week, with investors rattled by

an AI-led valuation bubble and the possibility that it could

burst. So far, better-than-expected earnings from Nvidia Corp ( NVDA )

have failed to quell those worries.

Teng said despite the decline, bitcoin is trading at more

than double its level in 2024, when institutions like BlackRock

began launching crypto investments and products.

"Over the past 1.5 years, the crypto sector has performed

very, very well, so it's not unexpected that people do take

profit," Teng said.

"Any consolidation is actually healthy for the industry, for

the industry to take a breather, find its feet."

Teng declined to comment on whether Binance founder

Changpeng Zhao would return to the exchange after he was

pardoned by U.S. President Donald Trump in October.

Zhao, a citizen of Canada who was born in China, paid a $50

million fine and served nearly four months in prison last year

after pleading guilty to violating U.S. money laundering laws.

Zhao was replaced by Teng in 2023 as chief executive.