19:05 ▪
3
min read ▪ by
The crypto market continues to suffer. While Bitcoin is more or less holding out, altcoins are collapsing. And the CryptoQuant data is unequivocal: this decline could well be the worst of the cycle.
In short
- According to CryptoQuant, 38% of altcoins are near their all-time lows.
- The current decline exceeds the intensity seen after the collapse of FTX in November 2022.
- Bitcoin ended February with a loss of 14.85%, or 47.28% below its October high.
Worst altcoin correction since FTX crash
Blockchain analytics firm CryptoQuant is sounding the alarm: according to its latest data, 38% of altcoins are close to their all-time lows today, a level never reached since the FTX collapse in November 2022.
As a reminder, at that time the “percentage of altcoins near ATL” indicator, meaning their all-time lows, peaked at 37.8%. It is now exceeding that, confirming that the current pain is unprecedented in this cycle.
The general context doesn’t help. In February, Bitcoin fell 14.85%, down 47.28% from its October peak. This pressure on the cryptocurrency king mechanically pulled altcoins down during his downfall. Investors are fleeing risky assets and liquidity is scarce.
The total market capitalization, excluding Bitcoin and stablecoins, has been in continuous decline since the beginning of October. Altcoins remain in a zone of structural weakness, with no bullish catalyst in sight in the near term.
A market under pressure, but not without opportunities
A comparison is made with 2022. The collapse of the TerraUSD stablecoin followed by cascading bankruptcies – Three Arrows Capital, BlockFi and then FTX – plunged the sector into a deep crisis of confidence. Today, although the shock is of a different nature, its magnitude on altcoins is comparable, even greater.
This has been compounded by global geopolitical tensions fueling widespread risk aversion. In Iran, for example, cryptocurrency withdrawals jumped 700% after the recent military strikes, demonstrating market jitters in an unstable international climate.
Despite everything, analysts emphasize a point often ignored in the stages of surrender:
- Periods of strong pressure on altcoins historically precede significant rebounds.
- Extreme price levels can create attractive entry points for long-term investors.
- Selectivity becomes key: only solid projects survive this market cleansing.
Altcoins are going through their toughest trial by fire since the post-FTX era. The market seems to eliminate the superfluous and keep only the essentials. For seasoned investors, these are the times when great opportunities open up if they know where to look.
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I am passionate about Bitcoin, I love exploring the intricacies of blockchain and cryptocurrency and sharing my discoveries with the community. My dream is to live in a world where privacy and financial freedom are guaranteed for everyone, and I firmly believe that Bitcoin is the tool that can make this possible.
DISCLAIMER OF LIABILITY
The views, thoughts and opinions expressed in this article are solely those of the author and should not be taken as investment advice. Before making any investment decision, do your own research.
