The crypto market continues to suffer. If bitcoin resists as best it can, altcoins collapse. And the CryptoQuant data is clear: this decline could well be the worst of the entire cycle.
In brief
- 38% of altcoins are near their all-time lows, according to CryptoQuant.
- The current decline exceeds in intensity that observed after the collapse of FTX in November 2022.
- Bitcoin ended February down 14.85%, 47.28% below its October peak.
The worst altcoin correction since the FTX crash
Blockchain analysis firm CryptoQuant is sounding the alarm: according to its latest data, 38% of altcoins are today near their historic lows, a level not reached since the collapse of FTX in November 2022.
As a reminder, at that time, the “percentage of altcoins close to ATL” indicator, i.e. their all-time historical lows, had peaked at 37.8%. It now points beyond, confirming that the current pain is unprecedented for this cycle.
The general context doesn't help. In February, the bitcoin fell 14.85%showing a decline of 47.28% compared to its October high. This pressure on the king of cryptos mechanically dragged altcoins into its fall. Investors are fleeing risky assets, and liquidity is becoming scarce.
The total market capitalization, excluding Bitcoin and stablecoins, has been declining continuously since the beginning of October. Altcoins remain in a zone of structural weakness, with no visible bullish catalyst in the short term.
A market under pressure, but not without opportunities
The comparison with 2022 is eloquent. The implosion of the stablecoin TerraUSD, followed by the cascading bankruptcies of Three Arrows Capital, BlockFi, then FTX, had plunged the sector into a deep crisis of confidence. Today, if the shock is different in its nature, its magnitude on altcoins is comparable, or even greater.
Added to this are global geopolitical tensions which are fueling widespread risk aversion. In Iran, for example, crypto withdrawals jumped 700% after recent military strikes, illustrating the feverishness of the markets in an unstable international climate.
Despite everything, analysts highlight a point often ignored in phases of capitulation:
- Periods of high pressure on altcoins historically precede significant rebounds.
- Extreme price levels can create attractive entry points for long-term investors.
- Selectivity becomes the key: only solid projects will survive this market cleansing.
Altcoins are going through their most severe trial by fire since the post-FTX era. The market seems to be eliminating the superfluous to keep only the essentials. For seasoned investors, it is precisely in these moments that the great opportunities come into play, provided they know where to look.
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