Former Binance CEO Changpeng Zhao has resurfaced with a sobering yet calculated message for crypto market participants.
As digital asset prices continue to show volatility amid shifting global macro conditions, Zhao, commonly known as CZ, reminded investors that only a handful of cryptocurrencies backed by solid fundamentals are likely to survive and eventually thrive.
Posting on the social platform X, Zhao addressed the current downturn with a sense of realism tempered by long-term optimism. His core message: despite ongoing market pressure, strong crypto projects with real-world value, sound architecture, and committed communities will likely rebound and reach new all-time highs. The rest, he warned, may never recover.
In Zhao’s words, “everything before the next ATH is a dip”, a pointed reminder that long-term value in the crypto market is often obscured by short-term turbulence.
Market Sentiment Stabilizes, but Investors Remain Guarded
Recent shifts in investor psychology appear to support Zhao’s view. According to the Crypto Fear & Greed Index, market sentiment has moved out of fear territory and into a more neutral stance.
The index now sits at 49, a marked improvement from its recent level of 37. This uptick suggests that while uncertainty lingers, outright panic is easing.
The index, which ranges from 0 to 100, gauges investor sentiment using a combination of volatility, momentum, trading volumes, and social media trends. Scores below 40 indicate fear, while those above 60 suggest greed.
Historically, periods of extreme fear have coincided with market corrections, while high greed levels often precede significant price tops.
Data from Coinglass further reveals that fear and neutrality dominate the long-term landscape. Around 31 percent of all recorded trading days in crypto history have taken place under fearful sentiment, while nearly 27 percent have occurred in neutral conditions.
These figures underscore the cyclical and emotionally driven nature of the digital asset market.
The Case for Selective Survival in Crypto
Zhao’s warning adds to a growing chorus of veteran voices urging investors to focus on fundamentals over hype. While the market is crowded with thousands of cryptocurrencies, only a small fraction possess the underlying infrastructure needed to endure long-term volatility.
He argues that resilience won’t be determined by brand recognition or short-term popularity but by real use cases, security, and sustained development.
The ability of a project to offer genuine value, whether through payment solutions, decentralized finance, or enterprise-grade blockchain infrastructure, will be the critical filter during this market reset.
Recent movements in Bitcoin’s price continue to serve as a barometer for broader sentiment. Historical data shows that when fear dominates, Bitcoin typically trades between $40,000 and $60,000.
During greed-fueled phases, it tends to push toward new highs. If current trends hold, a market recovery could begin once investor confidence returns and key projects distinguish themselves from less viable tokens.
What Comes Next?
Zhao’s comments are particularly timely as regulatory pressures, macroeconomic uncertainty, and technological competition continue to challenge the crypto industry.
With global central banks adopting digital currency frameworks and blockchain integrations accelerating across finance, logistics, and identity sectors, the battle for relevance among crypto assets is intensifying.
Projects that fail to meet evolving expectations or remain overly dependent on speculative trading may gradually fade. Meanwhile, those offering scalable, secure, and regulatory-aligned platforms could find themselves at the forefront of the next growth cycle.
Final Thoughts
As sentiment begins to balance, Zhao’s remarks serve as a sharp reminder: this is not just a bear market, it is a stress test for utility, vision, and execution. While speculative tokens may vanish in the coming cycles, those building for the future stand a real chance at achieving and surpassing their former peaks.
In a market where emotion drives short-term price action, it’s often discipline and due diligence that separate long-term winners from temporary hype.
