During the 618 Shopping Festival, various platforms are offering discounts and promotions. Of course, the cryptocurrency world is no exception, and the decline of cryptocurrencies continues.
As Bitcoin fell below 65,000 USDT in the short term this morning, ETH and many other mainstream altcoins once again experienced a collective dive. The altcoins are currently in a "bloodbath", with most of them falling by 20 points.
In addition, yesterday’s newly launched ZK even fell below 0.2 USDT, and once fell to 0.1906 USDT. It is currently reported at 0.1935 USDT, with a 24-hour drop of 36.4% (based on pre-market price calculation)... In this regard, some users who were numb to the drop even joked: "ZK is reminding us to short..."
Affected by the overall market downturn, the total market value of cryptocurrencies continues to shrink. Currently, the total market value of cryptocurrencies has dropped to 2.46 trillion US dollars, a 24-hour drop of 4.5%.
In the past hour alone, the total amount of liquidation on the entire network has reached 178 million US dollars, of which the vast majority are long orders, amounting to 173 million US dollars. In terms of currencies, BTC and ETH were rarely squeezed into second place by "other" currencies, with the latter ranking first with 41.2 million US dollars.
Is copycat no longer viable?
Looking back at the overall market changes in this round of bull market, although BTC once refreshed its historical peak, altcoins (except for a few sectors such as meme) have never been able to perform in line with investors' expectations.
Especially after BTC entered the adjustment phase since March, the altcoin market has been “falling and never looking back”. The cumulative maximum decline of many popular altcoins such as ORDI, OP, ARB, TIA, etc. has even exceeded 70%.
Judging from the current market conditions, the overall trend of altcoins seems to have completely decoupled from BTC and ETH. Considering that most retail investors’ positions are mainly in altcoins, this has also led many retail investors to complain: “I watched Bitcoin reach new highs, but my positions kept shrinking.”
The main reasons for the decoupling of altcoin trends
First, the approval of ETFs has led to changes in the market's liquidity transmission model. In the past, the entry path for incremental funds was generally "stablecoins - BTC, ETH - altcoins", but now incremental funds from traditional markets are more inclined to directly invest in BTC through ETFs, which also leads to the inability to continue to transmit funds, resulting in a lack of liquidity in the altcoin market.
Second, the continuous massive unlocking of "VC tokens" has brought about continuous selling pressure, resulting in a market structure of "oversupply" - if you look closely at the circulation changes of some altcoins, you will find that although the prices of some tokens continue to fall, the circulating market value continues to set new highs.
Third, new projects that opened at sky-high prices are constantly sucking the remaining liquidity in the market. ionet, ZKsync, LayerZero, Blast... a large number of popular projects that have been hyped for a long time are queuing up to go online, and FDV will generally reach the level of billions of US dollars, which further aggravates the lack of liquidity in the altcoin market.
In this dark moment, predictions about the future market of altcoins seem to have come to a crossroads.
The market is experiencing increasing selling pressure, especially from venture capital funds that need to raise capital, which has led to more selling than buying. This situation, coupled with low trading volumes during the summer, has made it difficult for altcoins to gain financial traction. Google searches for altcoins have been declining. A stable Bitcoin price can inject confidence into the market, but it cannot increase 50 times, at least not now, while altcoins can. If Bitcoin prices can remain stable, expect a wave of (altcoin) bull runs in a few months.
At present, the only effective advice we can give at the operational level is not to leverage altcoins, control risks, and don't be impulsive. Hold the spot patiently, and use part of the funds to deploy some ETH and its sector tokens. The closer to the ETF approval time, the more ETH and its sector will definitely rise.
Later, I will bring you analysis of leading projects in other tracks. If you are interested, you can click to follow. I will also organize some cutting-edge consulting and project reviews from time to time. Welcome all like-minded people in the cryptocurrency circle to explore together.
