Crypto Investors Warned Only 10% of Tokens Will Reach New Highs

Changpeng Zhao, the former CEO of Binance, has issued a warning to crypto investors, stating that only a select few cryptocurrencies with robust fundamentals will endure and reach new all-time highs. Zhao shared this perspective in a recent post on the social network X, where he highlighted that the current market downturn is temporary. He emphasized that while the market may be uncertain at present, strong projects are likely to emerge from this period and thrive as the market recovers.

Investor sentiment is gradually stabilizing, although caution remains prevalent. The Crypto Fear & Greed Index currently stands at a neutral level of 49, which is an improvement from its recent score of 37, indicating a state of fear in the market. This index, ranging from 0 to 100, measures investor emotions and overall market sentiment. Scores below 40 signify fear, while scores above 60 indicate greed. The current reading suggests that risk aversion has decreased, but investors are still hesitant.

Historical data reveals that fear and neutral sentiment have been the most prevalent emotions in the crypto market. Approximately 30.75 percent of trading days have occurred during periods of fear, while 26.94 percent fall under neutral conditions. This data underscores the volatility and emotional swings that characterize the crypto market.

Market data also indicates that shifts in sentiment closely align with Bitcoin’s price movements. When the index reaches high levels of greed, price peaks often follow. Conversely, fear typically coincides with corrections or pullbacks in Bitcoin’s value. These trends highlight a significant correlation between emotional sentiment and price movements in the crypto market.

Zhao’s warning underscores the importance of project fundamentals. He believes that not all tokens will be able to return to or exceed their previous highs. The assets that will succeed are those with strong technology, practical use cases, and a supportive community. As investor sentiment stabilizes, Zhao’s remarks serve as a reminder that only fundamentally strong cryptocurrencies are likely to survive this phase. Market observers are now watching closely to see which projects will demonstrate resilience on the path to the next all-time high.