PiCK
[Analysis] “38% of altcoins near all-time lows…worse than right after the FTX collapse”
Summary
- Darkfost said 38% of altcoins are trading near all-time lows, a worse level than immediately after the FTX collapse.
- He said the broader market backdrop is unfavorable for risk-asset investing and market liquidity is fragile, with funds moving into more volatile equity or commodities markets.
- With investors growing more cautious and reducing interest in altcoins, he noted that periods of sharp deterioration can also be when opportunities begin to emerge.
Forecast Trend Report by Period
An assessment has emerged that the altcoin market has entered its deepest retracement phase of this cycle.
Crypto analyst Darkfost said on the 3rd via X (formerly Twitter) that “38% of altcoins are currently trading near their all-time lows (ATL),” adding that “this is worse than right after the FTX collapse.”
He explained that “overall market conditions are not favorable for risk-asset investing, and altcoins are the segment hit first by the fallout,” noting that “market liquidity remains fragile, and funds are currently shifting to more volatile equity or commodities markets.”
Darkfost said the indicator shows the largest degree of retracement altcoins have experienced in this cycle. “In April last year, the ratio was 35%, and it rose to 37.8% immediately after the FTX collapse,” he said, adding that “the current figure has surpassed that.”
He added, “The chart clearly shows the current state of the altcoin market,” and said “investors remain cautious and are reducing their interest in altcoins.”
However, he also mentioned the possibility of a rebound, saying, “It is also when conditions deteriorate sharply that opportunities begin to emerge.”
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
