[Analysis] “38% of Altcoins Near All-Time Lows… Worse Than Right After the FTX Collapse”
Summary
- He said 38% of altcoins are currently trading near all-time lows (ATL), a level worse than immediately after the FTX collapse.
- He explained that the overall market environment is unfavorable for risk assets and liquidity is fragile, driving funds toward equities and commodities.
- However, he also noted that when conditions worsen sharply, it can mark the point when opportunities begin to emerge—raising the possibility of an altcoin rebound.
Forecast Trend Report by Period
A fresh assessment says the altcoin market has entered its biggest drawdown phase of this cycle.
Crypto analyst Darkfost said on X (formerly Twitter) on the 3rd that “38% of altcoins are currently trading near their all-time lows (ATL),” adding that “this is worse than the period immediately after the FTX collapse.”
He explained that “the overall market backdrop is not favorable for risk-asset investing, and altcoins are the segment that feels the impact first,” adding that “market liquidity remains fragile, and funds are currently shifting to more volatile equity or commodity markets.”
Darkfost said the indicator reflects the largest drawdown altcoins have experienced in this cycle. He noted that “the ratio was 35% last April, and rose to 37.8% right after the FTX collapse,” adding that “the current figure has surpassed that.”
He continued, “The chart clearly shows the current state of the altcoin market,” adding that “investors remain cautious and are reducing their interest in altcoins.”
Still, he also mentioned the possibility of a rebound, saying that “when conditions deteriorate significantly is also when opportunities begin to emerge.”
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
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