Markets
Upcoming Crypto Market Opportunities: When and Why (Analysis)
Crypto markets have fallen more than 5% over the past seven days as $150 billion has left the space, mostly from small-cap digital assets.
However, this Altcoin decline it’s been happening for months, according to Real Vision chief analyst Jamie Coutts.
“Small-cap crypto assets have been suffering since this year’s March rally,” he said in an X post on June 13.
Furthermore, over the past three months, the “top 200 equal weight index is down 33% relative to the market cap index, which is down about 12%,” he added.
No Altseason in sight
The analyst broke down by sector, noting that infrastructure and applications are down about 40%, while smart contracts, currency and DeFi assets are down more than 30% since March.
He added that if this is a regular mid-cycle correction, “we expect some opportunities to emerge in mid- and small-cap companies once the market stabilizes.”
“Despite more evidence that US inflation is slowing, altcoins have continued their brutal sell-off,” Bankless stated in a note to investors on June 13. 70 of the top 100 tokens fell more than 10% for the week, with 20 falling more than 20%, he added.
Overall, cryptocurrency markets are down 11.5% from their total capitalization peak of $2.89 trillion in mid-March.
In an email to investors on June 14, FxPro senior market analyst Alex Kuptsikevich predicted more trouble:
“Risk demand is gradually declining, forming a sequence of decreasing intraday highs. However, horizontal support remains in the $2.42 trillion area, where the market also stabilized from May 17th to May 20th.”
Altcoin pain is normal
On June 13, crypto market analyst ‘Jelle’ noted that Bitcoin is just 9% away from its all-time high, but altcoins are around 70% down before adding “this is normal.”
“Once BTC enters price discovery, alts will rally strongly,” they added.
Technical analyst ‘Mustade’ painted a darker picture for altcoins, however, noting that they have been in decline since the last peak of the cycle in 2021.
Either way, there won’t be much love for altcoins until Bitcoin exits its limited channel, where it has been trading since the beginning of March.