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- Founder and former CEO of Binance Changpeng Zhao has suggested that investors reduce their altcoin portfolios by at least half to invest in Bitcoin.
- According to him, anyone who holds Bitcoin for at least four (4) years does not lose his money.
The total crypto market has recorded a 3% surge in the last 24 hours as Bitcoin (BTC) cements its dominance with a 57.4% market share, as reviewed in our recent publication. Ethereum also has a dominance level of 11%. However, the altcoin index has taken multiple steps backward to “sit” at 45/100. According to analysts, this reading would have to reach 75/100 to validate the much-anticipated rally in the altcoin market.
Prior to that, former Binance CEO Changpeng Zhao (CZ) has dropped a comprehensive insight to guide investors to navigate within the crypto market. Firstly, CZ pointed out that no one has lost money on Bitcoin or BNB by holding for at least 4 years. However, a lot of altcoin investment shrinks year after year with no sign of recovery.
To perfectly strategize to minimize loss and stand a better chance of securing some “reasonable gains,” CZ suggested that investors shrink their Altcoin portfolios by more than half and invest them in bigger names like Bitcoin. Alternatively, he also advised those who cannot make such changes to hold on for the long term as long as they “can stomach the uncertainty.”
Critically analyzing his presentation, we found that most altcoins have failed to breach their previous cycle peaks, unlike Bitcoin, which is attempting to double the 2021 all-time high.
For Ethereum, the closest it has been to the 2021 all-time high price of $4,891 is the 2024 high of $4,106. At press time, ETH was trading at $3,265 after declining by 0.88%. Meanwhile, traders expect ETH to breach its highest point soon, as explained in our last analysis.
CZ and other Analysts Delves Deeper into the Bitcoin and the Altcoin Market
CZ’s recent analysis on the market gained massive attention when he pointed out on January 19 that Fear Of Missing Out (FOMO) was starting. At that time, the Fear and Greed index was in the greed mode with a reading of 64 out of 100. However, this has tilted to 60/100 at press time.
Commenting on this, analyst and CryptoQuant CEO Ki Young Ju highlighted that the altseason is stifled by the lack of fresh inflows into the market. According to him, this year’s cycle would not be triggered by the movement of funds from Bitcoin into altcoins as witnessed in the previous cycle. Instead, the altseason would be triggered by stablecoin liquidity and the significant surge in the number of stablecoin trading pairs.
Fortunately, data suggests that fresh capital is entering the altcoin market, underscoring the rising demand. Similarly, the founder of venture capital firm Hartmann Capital, Felix Hartmann, predicted in December that altcoins would witness a “slow bleed” until the latter part of January 2025. This aligns with Citigroup analysts’ prediction that SHIB and ETH would lead the altseason, as indicated in our earlier article.
