Changpeng Zhao's recent mysterious tweet has led to speculation about an upcoming altcoin season. With Bitcoin's dominance waning and global cryptocurrency being regulated, many are anticipating a bullish altcoin run, and there are various opinions on how it will unfold.
Changpeng Zhao (CZ), former CEO of Binance, recently raised a question about a potential altcoin season with an X post featuring the 'Alt' key on the keyboard. He asked, 'Which key is available on Windows and Linux but not available on Mac?' The answer is the 'Alt' key.
When he tweeted, many commented, guessing that he was hinting at the upcoming Altcoin season, which is the most anticipated rally as Bitcoin stalls below the $100,000 price point.
The surge of Bitcoin and the recovery of altcoins
BTC has risen 125% in 2024, but altcoins like XRP, Cardano (ADA), and Chainlink are still below their all-time highs. The TOTAL2 index, which tracks the market capitalization of altcoins, is currently at $1.5 trillion, far from its peak of $1.71 trillion in 2021, indicating that there is still room for growth in the altcoin market.
Global cryptocurrency regulations reinforce the opportunity for an altcoin season. Countries like Singapore, Japan, and Switzerland have made progress in regulating cryptocurrencies, which enhances the market's appeal. With Bitcoin's dominance weakening and altcoin market capitalization increasing, it seems that altcoins may soon outperform Bitcoin.
Despite the many supporters and potential for Bitcoin, altcoins have their own potential unlike meme coins, even CZ is disappointed with the hype surrounding meme coins and finds it strange. According to technical analysis, this could be the longest and highest bullish phase for altcoins.
CryptoQuant's commentary on the altcoin rally
However, Ki Young Ju, CEO of CryptoQuant, shares his views on the altcoin season. He believes that Bitcoin is drifting away from the broader cryptocurrency market, primarily due to its increasing involvement in paper-based Layer-2 systems like Bitcoin ETFs and stocks of Bitcoin-friendly companies like MicroStrategy.
This shift has broken the usual correlation 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 may be driven more by the liquidity of stablecoins than by Bitcoin asset rotation. With many countries adopting and legalizing cryptocurrencies, the potential for an altcoin season is rising. However, it is expected to be more selective and unpredictable, with only the most resilient and innovative projects emerging as winners.
Altcoin currently has two options: to create paper-wrapped versions like Bitcoin or to develop a stronger 'Internet money' ecosystem using stablecoins or Bitcoin itself. Investors are advised to focus on projects that offer long-term value and adaptability, as this altcoin season is expected to be different from previous ones, with only a few altcoins showing real potential.
