Changpeng Zhao’s recent cryptic tweet has led to speculation about an upcoming altcoin season. With Bitcoin’s dominance weakening and global crypto regulating, many expect an altcoin rally, and there are various opinions on how it will unfold.
Changpeng Zhao (CZ), the former CEO of Binance, recently raised questions about a potential altcoin season with an X post featuring the “Alt” key on a keyboard. He asked, “Which key is available on Windows and Linux but not on Mac?” The answer is the “Alt” key.
As he tweeted, many commented, guessing he was indicating the upcoming Alt season, which is the most expected rally as Bitcoin stalls below the $100k price mark.
Which key is available on Windows and Linux, but not on Mac? pic.twitter.com/z4wfZbPbbD
— CZ 🔶 BNB (@cz_binance) December 3, 2024
Bitcoin’s surge and altcoins’ recovery
BTC has risen by 125% in 2024, but altcoins like XRP, Cardano (ADA), and Chainlink remain below their all-time highs. The TOTAL2 index, which tracks altcoin market capitalization, currently stands at $1.5 trillion, far from its peak of $1.71 trillion in 2021, suggesting there is still room for growth in the altcoin market.
The global regulation of crypto strengthens the chances of an altcoin season. Countries like Singapore, Japan, and Switzerland have made progress in regulating crypto, which increases market appeal. With Bitcoin’s dominance weakening and altcoin market caps rising, it looks like altcoins may soon outperform Bitcoin.
Though there were many supporters and potential for Bitcoin, Altcoins has its own potential unlike meme coins, even CZ was frustrated about the meme coin hypes and he felt weird about it. As per the technical analysis, this could be the longest and highest bull run for Altcoins.
CryptoQuant’s take on the altcoin rally
But, Ki Young Ju, CEO of CryptoQuant, shares his views on the altcoin season. He thinks Bitcoin is moving away from the wider crypto market, mainly because of its increasing involvement in paper-based Layer-2 systems like Bitcoin ETFs and stocks of Bitcoin-friendly companies like MicroStrategy.
This change has broken the usual link between Bitcoin and altcoins. Ju believes that only a few altcoins are gaining new liquidity and showing unique trends.
Ju also argues that the next altcoin rally will likely be driven more by stablecoin liquidity rather than Bitcoin asset rotation. With many countries adopting and legalizing cryptocurrency, the potential for an altcoin season is growing. Still, it is expected to be more selective and unpredictable, with only the most resilient and innovative projects emerging as winners.
Altcoins now have two options: create paper-wrapped versions like Bitcoin or develop a more robust “Internet money” ecosystem using stablecoins or Bitcoin itself. Investors are advised to focus on projects that offer long-term value and adaptability, as this altseason is expected to be different from previous ones, with only a few altcoins showing true potential.
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