Good day everyone,
I hope you are all having a good day, welcome to CryptoGod-1's blog on all things crypto. In this post I will be looking at the recent comments by Changpeng “CZ” Zhao.
CZ - ‘FOMO Season Soon’
The founder of Binance, Changpeng “CZ” Zhao, has expressed his belief that due to CoinMarketCap’s Altcoin Season Index beginning to climb it could be considered a signal that an altcoin rally might be imminent. As part of a posting on social media platform 'X' CZ stated:
“Not sure how accurate it is, but it is ticking up. FOMO season soon...”
The index tracks whether altcoins are outperforming Bitcoin over a 90-day period and the steady rise is a strong signal of their improvement, even though Bitcoin remains the dominant cryptocurrency. Currently the index sits at 42 out of 100, although when CZ made his statement the index was at 51. A mere month ago it sat at just 16.
https://coinmarketcap.com/charts/altcoin-season-index/
When the index reads above 75 it is an indication of an official 'Altcoin Season' as this means at least 75 of the top 100 altcoins outperform Bitcoin over the previous 90 days. The growing momentum in the altcoin market shows there is an anticipation of the impending altcoin season, although historically it has always been Bitcoin to rally first and then Ethereum and other altcoins follow suit. This is fuelled by narrative-driven speculation, new protocol launches, and increased developer activity with the overall sentiment and liquidity within the market having been risen by Bitcoin.
Back in 2021 the top altcoins posted gains of over 170% compared with Bitcoin’s 2% during the same period. Current data supports that pattern. Ethereum is up 110% over the past 90 days, while meme coins like BONK (+148.7%) and FLOKI (+119.1%) have surged. The methodology behind the index excludes stablecoins and wrapped tokens and instead focuses on price performance among the top 100 coins listed on CoinMarketCap.
The dominance of Bitcoin within the crypto market has fallen, with it dropping 5.8% in just one week to under 61%. This marks its lowest level since March and the steepest decline since June 2022. This comes as the total crypto market capitalization has jumped from $3 trillion to around $3.8 trillion over the past three weeks.
While people are getting excited, altcoin season has NOT arrived yet. The index dropping back down to 42 shows this, although it feels like it is just around the corner. None of the 30 bull market top indicators have triggered yet, with Bitcoin dominance at 61%, the Altcoin Season Index at 42 and key metrics like Puell, MVRV Z-Score, and Mayer Multiple still in safe territory.
Have a great day.
Peace. CryptoGod-1.
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