Cryptocurrency markets have experienced a notable correction this week, with altcoin markets taking a beating while Bitcoin and Ethereum have remained relatively stable. Market analysts generally believe that the recovery of the altcoin market may take some time.
In the past seven days, the overall market fell by more than 5%, resulting in the withdrawal of $150 billion in funds, especially the digital assets with low market capitalization suffered serious losses. $BTC
Jamie Coutts, chief analyst at Real Vision, noted that the downward trend in small-cap crypto assets has been going on for several months since March.
He mentioned in his June 13 article that small-cap crypto assets have been in a slump since their March highs, with the top 200 equal-weight index down 33% and the market capitalization index down about 12%.
No sign of copycat season
Coutts further analyzed the performance of different industries and found that since March, infrastructure and application assets have fallen by about 40%, and smart contracts, currencies, and DeFi assets have fallen by more than 30%. He suggested that if this is a regular mid-term adjustment, there may be some opportunities for small and medium-cap assets after the market stabilizes.
Bankless noted in a June 13 report that despite evidence that inflation in the United States is weakening, the altcoin market continues to experience a sharp sell-off. The report also mentioned that 70 of the top 100 tokens fell by more than 10% this week, and 20 of them fell by more than 20%. Overall, the cryptocurrency market as a whole has fallen by 11.5% since the total market value reached $2.89 trillion in mid-March.
Alex Kuptsikevich, senior market analyst at FxPro, predicted in an email to investors on June 14 that as demand for risky assets decreases, the market has seen a series of lower daily price highs.
Nonetheless, the market still has some support at the $2.42 trillion level, as evidenced by the stabilization seen between May 17 and 20.
It is normal for altcoins to experience pain during their growth period
Market analyst "Jelle" observed that although Bitcoin is only 9% away from its all-time high, altcoins have generally fallen by about 70%, which he believes is a normal market adjustment. He expects that once Bitcoin enters the price discovery phase, altcoins will rebound strongly.
However, technical analyst “Moustache” is more cautious about the future of altcoins, pointing out that altcoins have been on a downward trend since 2021. In any case, unless Bitcoin can break out of the range-bound fluctuations since early March, it will be difficult for the altcoin market to turn around.
In summary, although the current cryptocurrency market is facing adjustments, analysts believe that this may provide opportunities for future market recovery and altcoin rebound. Investors should pay close attention to market dynamics, reasonably assess risks, and seize opportunities. #山寨币季 #山寨币 #加密货币 #比特币 #ETH $BTC
Conclusion:
After an in-depth analysis of the recent volatility in the cryptocurrency market, we can see that the market is undergoing a profound round of adjustments. Although altcoins are currently facing a cold winter, Bitcoin and Ethereum have shown strong resistance to declines, but market uncertainties require investors to remain vigilant. Analysts' views remind us that even in market downturns, there are potential opportunities. With the reduction in demand for risky assets and the exploration of market support levels, investors should pay more attention to market fundamentals and macroeconomic indicators to seize the opportunity of rebound when the market stabilizes.
In addition, the decline of altcoins is not without warning, but part of the cyclical adjustment of the market. Historical experience shows that market downturns are often accompanied by innovation and re-evaluation of value. Therefore, investors should consider the long-term trend of the market and potential growth drivers when evaluating investment decisions. At the same time, as the market matures, we expect to see a more robust and diversified cryptocurrency ecosystem, bringing new opportunities to investors.