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Altcoins Crash as Market Loses $600 Billion – But is the Worst Over?
The cryptocurrency market has suffered a staggering loss of $600 billion in recent times, with altcoins bearing the brunt of this downturn. As the market capitalization of altcoins has shed 38% from its all-time high, many are left wondering if this is as bad as it gets or merely a brief pause before another downfall.
CoinMarketCap’s Altcoin Season Index has plummeted to a multi-month low of 17, indicating deep Bitcoin season territory. A staggering 83 out of the top 100 altcoins have failed to outperform the dominant cryptocurrency over the last three months. The total altcoin market cap has taken a hit, with only 17 altcoins managing to defy the bearish trend.
Despite the bleak outlook, some analysts continue to hold onto hope. They point to historical data suggesting that such low altseason readings often precede strong altcoin rotations. While Bitcoin’s dominance is evident in the current downturn, seasoned traders note that this may not be the end of the road for altcoins just yet.
However, others are more skeptical about the prospect of an altcoin comeback. Ki Young Ju, CEO of CryptoQuant, believes the classic altseason model may have been rendered obsolete due to regulations and institutional adoption altering the landscape. He goes on to say that new capital will flow through stablecoins or widely adopted altcoins – a far cry from the traditional altseason.
While the data paints a grim picture for now, recent trends suggest that one in 57 tracked altcoins has outperformed Bitcoin over the past three days. This meager positive performance is hardly convincing, but it does offer a glimmer of hope to those who remain optimistic about the future prospects of these lesser-known cryptocurrencies.
The question on everyone’s mind right now is: will this downturn continue or can we expect some form of reversal? According to Alphractal CEO Joao Wedson, exhaustion in large-cap selling could be the catalyst for a potential comeback. Meanwhile, there are also hints that small-cap pumps may provide the impetus for altcoin recovery.
Despite the overwhelming evidence pointing towards Bitcoin’s dominance, it is essential to recognize that this trend may not persist indefinitely. We will have to wait and see if history repeats itself or if we witness a significant shift in market momentum.
Source: https://ambcrypto.com/altcoins-crash-as-market-loses-600-billion-but-is-the-worst-over/
