So, apparently, altcoins are like the wild card of the current market.
I didn’t come up with this; it’s from Darkfost, an analyst who pointed out that 38% of altcoins are trading close to their all-time lows, which is actually worse than when the FTX disaster hit us.
We’ve all seen the rollercoaster that is altcoins here, so this isn’t exactly shocking information.
Check it out: https://en.bloomingbit.io/feed/news/107131
And those altcoins not hitting the lowest of the lows are still hanging around at pretty low prices.
Many of these altcoins are not good to invest in them, they lack clear use case, good project team, and have very low community backing, most times they only grow by hype, and dips significantly when the hype is over. It is very important you do your research properly because most of the cryptocurrencies will not regain their momentum after falling so low, and this is the reason why bitcoin is trusted because anytime that bitcoin falls in price, their is always hope of regaining bullish trend on the long run, and this quality is what many altcoins lack.
I think one factor is that most of the investors understand the cryptonomics these days. Once an altcoin went to its all time high.
It's unlikely to come back there and that's why they're pulling their money from these altcoins when they don't see it going back from the top.
That's the decision which is wise that can be done by an investor that has most altcoins in their portfolios. The time right now is consolidate these assets into making them fewer and focusing more with BTC.
If I remember it right, altcoins used to do great in periods after a bitcoin bull run, when bitcoin price stayed rather high. Then the investors used to try their luck - from their profit on Bitcoin - playing with altcoins.
But this was long ago; for quite a lot of years I stopped caring about the price of altcoins, excepting 1-2 of them.
In the passing years I've read more about pain than joy in altcoins.
And given all this, although I am not enjoying this kind of news, I am (by far!) unsurprised, especially since we are in crypto winter.
But yeah, the voices preaching everywhere that this time is different (yet again, heh), was incredibly powerful. And altcoins tend to also lure those looking for quick gains (even quicker than with Bitcoin!), and those tend to also be the first ones to sell low (after buying high).
This is understandable given the current altcoin market situation, where everything seems hopeless, as it was during the previous bull market. This analysis is perfectly reasonable, given the large number of altcoins created, some will inevitably be abandoned by their communities and early developers, resulting in a downturn and perhaps even a demise.
We need to read more about how to recognize the potential of altcoins. The best advice is not to hold on to these altcoins for too long, as they will eventually be abandoned by something new and promising.
It takes a level of risk bearing with good crypto currency understanding with the ability of not fallen into any of those scammers projected coins which had also flooded the crypto market over hyping because hyping.
Don't you think it could be a coincidence with the intersection market behavior of the alt market and the FXT? I should believe this is a rare news with the striving speculation because it later turns out to react like it is a traditional just like we have in the Bitcoin bear market because while you think it is going to be repetitive, you could probably get the opposite.
Indeed it takes a smart reaction to secure a better position in the alt market.
They are volatile that can prove an entire market cap valueless and those who are potential may also faced with long term bear market.
But why would that even be comparison point? ATH from last bull market vs FTX crash? That doesn't make any sense. Shouldn't the comparison be last ATH to drop vs previous ATH to drop.
Bear cycle had been going for a long time before FTX crashed, i mean luna crashed the markets earlier that year. Article seems like a click bait topic to be honest, as there is nothing new to be seen. We have seen bear cycles before, and last one wasn't started by ftx.
I perfectly understand you that this is not the only bad event that has lead to falls in crypto market and that crashes and bear market have been part of cryptocurrency right from the start. But seriously I think the angle which the analyst actually made this about FTX was because its the last major bad news that prolonged the bearish market then.
Why is it used in this context? Its simply because many people already have the narrative that its a very bad thing that can happen to make some Altcoins fall so low and thats why he stated that most are near even worse than FTX era and this isnt because of any huge bad news in the market.
Just a reminder to actually not treat Altcoins as investment
That doesn't explain the comparison though. Sure, FTX crash was a bad thing but comparison seems to be with previous altcoin season ATH. Was that a bad thing as well?
Also, where do you get that FTX would have prolonged the bear market, as compared to before that, cycles have been pretty much the same length. External fundamentals don't seem to matter when it comes to those.
Show me a single Altcoin that has done something more than what Bitcoin has done while keeping the same values Bitcoin has. 99 percent of them are Cryptocurrenices surrounded by a false hope that they may become what others could not. And do not get me wrong. One day, one may come out with something much better than what Bitcoin currently is. It is possible. Until then however, we will have a constant flood of Shit Coins that are worth something and then suddenly nothing over night. Like NeuroticFish says, this is totally unsurprising.
I can't say I'm surprised because I'm not. I expected this because I was here during the last bear market and nothing much has changed since then. Most of the altcoin projects were just created for grifting by their team. They raised shit ton of money for projects that no one would actually use in their day to day life. We need more altcoins to go below their ATL so that those value can flow into Bitcoin.
Didn't take analyst to see that altcoins are dumping and the number isn't just 38%. It's 99% of altcoins are hitting all time low right now and altcoin market capitalization is at $935 billion, it become even worse with liquidity fragmentation and surge of low float altcoins that get FDV number out of thin air.
So far every non relevant altcoin that the market don't really need are already -95% of their all time high. Try to pick random coin in CMC and there is a high chance that the altcoin you randomly picked has been on a downhill for a long time that only small amount of worth left.
I am pretty sure that they are counting just high caps / active coins. As most of all the coins / tokens in there have new ATL every week until zero, but list is so huge that it's not 99% but more like 99.999% of them that are in atl or dead. And ones that are not are just walking dead coins traded by either bots / used for pump and dumps, or for volume for money laundering.
This is the problem with altcoins, they rise so fast and crash very fast too. Bitcoin will never come close to the all time low and if anything makes that possible, that will end of everything. This is the reason I have confidence in Bitciin and not the altcoins. The few altcoins I'm holding are more established and follow Bitcoin closely, they did not near their all time low.
Are we like watching the first time you guys see a bear market? It goes down 80% in every bear market, some go down even more, some reach 90%+ lower than the ATH, it happens literally every four years and not a new thing. I think it's crazy to see people being shocked about it.
Plus, this bull run didn't have a big altcoin bull run, like most coins did not even reach the 3x of previous ATH levels, which normally it did in previous ones. Combine these two together and you get yourself a low for prices that is very normal and nothing shocking. This is why prices will be low and even lower in the near future, like it will not even stop here and will continue to go down even more, I am guessing another 10-20% from here is very possible.
This is the effect of hype, that's why its not good to ride with FOMO because there's big chance to lose when sudden dump will happen. This scene is so common on altcoin scene that's why its not recommended investment especially for those new investors.
They provably won't experience that fast big crashes on Bitcoin like it almost go to zero value. If there's a dump happened there's also a chance that it will recover just like what happen with this coin for many times.
I only hold few alts and make sure that they are on top of the market list, because I don't trust the other alts since those fast dump scenario is usually happening with those shitcoins.
What else do we expect when the market is already at the bear season and we see bitcoin how it has been falling and we are yet to launch into the old coins season, you should expect much of these because we are not in the alts season, it's a normal expectation that when bitcoin Fall by 10x, then expect that altcoins will massively Fall by more than 20x, this is the normal way we used to have it because we are not yet in the altcoins season, maybe a little more time is needed till we begin to see the correction and then market rises as we exit the bear season with time.