[Analysis] "Altcoin selling pressure at a five-year high…demand contraction deepens"

An analysis has found that selling pressure in altcoins excluding Ethereum (ETH) has recently hit its highest level in five years.

IT Tech, a CryptoQuant contributor, said on the 18th (local time) via CryptoQuant that "the 'Cumulative Buy/Sell Diff' in the altcoin spot market has widened to negative (-) $209 billion," adding that this marks "the most extreme sell-dominant phase in the past five years." IT Tech noted that "as recently as January last year, the indicator was close to zero (0), with demand and supply in balance," but that "over the subsequent 13 months, one-way net selling continued and accumulated (in the buy/sell differential)."

IT Tech stressed that "this is a structural outflow of funds, not short-term volatility." He added, "As Bitcoin (BTC) declined, retail investors exited, and there is no sign of institutional buying in altcoins," emphasizing that "the key point (in the buy/sell differential) is that net selling has persisted in the spot market on centralized exchanges (CEX) over the past 13 months."

He continued, "The figure of -$209 billion does not necessarily mean a bottom," adding that "it is closer to an indicator showing that a demand vacuum has formed structurally."