Nearly every altcoin took a nosedive as the crypto market witnessed one of its most brutal selloffs in recent memory. The altcoin market hemorrhaged a staggering $234 billion in just two weeks, marking one of the largest absolute drawdowns in recent history. So much for those “to the moon” predictions. Trading patterns resemble classic bear market dynamics, with significantly reduced trading volumes and widespread investor pessimism.
Bitcoin, meanwhile, stood its ground like the stubborn heavyweight it is. Its market dominance surged to 60.99%, reaching a two-year high that left altcoin holders watching from the sidelines. Those ETF approvals? They’re changing the game, and not in altcoin holders’ favor. Capital that might have typically flowed into alternative cryptocurrencies is now staying put in Bitcoin‘s corner.
Bitcoin flexes its dominance, hitting 60.99% market share while ETF approvals keep investment locked in its ecosystem, leaving altcoins in the dust.
The bloodbath wasn’t discriminating. Every single altcoin sector took a beating, with some tokens plummeting 20-40%. The sell-off was so widespread it ranked among the 41 worst days out of 1,662 trading days. Talk about a rough patch. The altcoin market cap (ALTCAP) couldn’t even muster the strength to reach a new all-time high, while Bitcoin kept flexing its muscles.
Market sentiment has turned as cold as a crypto winter. The Crypto Fear and Greed Index sits at a chilly 39, and analysts aren’t painting a rosy picture. Benjamin Cowen’s prediction of an “altcoin reckoning” by December 2024 or January 2025 is starting to look less like doom-saying and more like prophecy. History suggests that altcoins could see a gradual recovery after 2025, similar to the post-2019 bear market. Some market watchers are even suggesting that the mythical “altcoin season” might skip 2025 entirely.
The BTC/altcoin pairing has been losing ground for three straight years, and this recent capitulation event isn’t helping matters. With Bitcoin’s ETFs reshaping investor behavior and macroeconomic factors keeping everyone on edge, the altcoin market’s recovery path looks about as clear as blockchain technology to a first-time crypto buyer.
For now, the king of crypto sits on its throne while altcoins scramble to find their footing.
