With bitcoin (BTC) recently being “really stable,” and even jokingly referred to as a stablecoin in the community, it is “very much altseason” in the crypto market right now, according to Binance CEO Changpeng Zhao.
In an interview with Bloomberg TV, he said that the fact that altseason has arrived may be one of the explanations for why BTC has not been able to break out of its trading range, despite many predicting a move higher given the current economic backdrop.
Commenting on what could possibly trigger a bitcoin move out of its current trading range and to new highs, the CEO admitted that he doesn’t know what it would take other than “time.”
“I think sooner or later it’s going to break out,” the CEO said, arguing that “the amount of fiat flowing into the economy” will eventually push a scarce asset like bitcoin higher.
At pixel time (08:39 UTC), BTC trades at USD 9,185 and is almost unchanged in a day. The price is down by around 1.5% in a week and a month. BTC dropped by 14% in a year.
BTC price this year:
Regarding the frenzy surrounding altcoins, however, Zhao said that altseason has certainly arrived. And although he said it is difficult to tell exactly what is fueling the rally in many altcoins, he did mention Elon Musk tweeting about dogecoin (DOGE) as one factor that helps bring attention to this space.
“What’s fueling it could be anybody’s guess. Elon Musk tweeting about dogecoin could be part of it […] We don’t know, but it is really active right now,” the CEO said.
It’s inevitable https://t.co/eBKnQm6QyF
— Elon Musk (@elonmusk)
Further, the exchange boss also said that trading data from his own exchange shows that altcoins are favored at the moment, with more than 60% of futures trading volume on Binance coming from altcoins. This is “much higher than before,” the CEO added.
He also explained that the same bullishness towards altcoins can be seen by looking at the second-quarter performance of the cryptoassets listed on Binance, where he said that out of the 200 coins listed, only two went down over the course of the quarter.
Also, while the rally in the altcoins is supported by the DeFi (decentralized finance) frenzy, the CEO warned that although “DeFi is a very hot space,” there are also “a lot of potential risks there.”
“If you do go into that area, go with caution,” he said.
The CEO also commented on the correlation between the stock market and bitcoin, saying that people “should not take the meaning of bitcoin as a safe haven asset too literally,” given that “there are always multiple factors affecting the price of an asset.”
Watch the entire interview with Binance’s Changpeng Zhao on Bloomberg’s Daybreak: Asia below: