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Changpeng Zhao (CZ), founder of Crypto Exchange Binance, suggested on 21 September that the current financial market surge may not qualify as a “real bull market.” His remarks, shared on social media, highlighted a key distinction: rallies based on strong economic fundamentals versus those driven by speculative momentum.
Dumb question about X.
My followers grew quickly from 9-10m, in a bear market. Then slowed to a halt after 10m, even in this bull market. Followers grew fast in previous bull markets. Lost correlation?
Is this normal? or something wrong with X? or am I being "too KOL"? 😂
— CZ 🔶 BNB (@cz_binance) September 21, 2025
CZ pointed to the Institute for Supply Management (ISM) index, a critical indicator of manufacturing and services activity that often correlates with corporate earnings, as a benchmark for determining whether markets are supported by real economic strength.
Market Overheating Signals
His cautionary comments come amid concerns about overheated valuations in U.S. equities. According to Charles Schwab’s mid-2025 outlook, the S&P 500 price-to-earnings ratio has reached levels last seen during the 2021 peak.
The S&P 500 has already notched 57 all-time highs in 2025, drawing comparisons to previous bull years like 2017 and 2021. However, analysts note that such years are often followed by consolidation phases rather than continued parabolic gains.
This overheating sentiment is spilling into the crypto markets, where Bitcoin (BTC) remains highly correlated with equities. The implication: a fragile foundation in traditional markets could also weigh heavily on digital assets.
Traders Growing Bearish
Schwab’s Q2 2025 Trader Sentiment Report showed bearish sentiment at its weakest level in two years, with nearly 60% of traders pessimistic on U.S. equities.
Key takeaways include:
- Recession fears rose from 33% last quarter to 63%.
- 62% of traders expect stagflation in 2025.
- 61% worry about tariff policies slowing growth.
This disconnect between pessimistic economic outlooks and record-high stock prices mirrors CZ’s concern: that the rally is speculative and could unravel without stronger fundamentals.
Bitcoin’s Uncertain Foundation
CZ emphasized that while technical strength may push markets higher, without ISM-backed fundamentals, the rally risks a sharp correction.
For Bitcoin, the message is clear: if the broader economy stumbles, the cryptocurrency may struggle to sustain momentum, despite optimism from digital asset investors.
His warning serves as a reminder that “true bull markets” are historically built on solid macroeconomic underpinnings, not just price charts and speculative hype.
