Two signals indicate that the altcoin market is not over yet!

Throughout December, the main tone of the market was undoubtedly adjustment. Although the maximum decline of Bitcoin from its high was only 15%, the decline of many altcoins has been halved, and even the entire gains of some altcoins in this round of bull market have been completely wiped out. According to CoinMarketCap data, in this round of adjustment, the median of the maximum decline of the top 100 currencies by market value was 44%. Such a sharp decline has only occurred in the crashes of 5.19 and 3.12 in the past five years. Therefore, this adjustment has also caused the market to suffer a heavy blow to altcoins. So, is there still a chance for the altcoin market?

Regarding this issue, the author's point of view is very clear: the altcoin market has not ended. From the trading level, the trend of funds flowing to altcoins has been very obvious, mainly manifested in the following two aspects: First, the holdings of altcoins in this round of market have exploded, and the growth rate is far higher than that of Bitcoin. Although the massive liquidation in December caused the size of open contracts to drop by nearly $10 billion, the current size of open contracts is still about 40% higher than the peak of the bull market in March 2024. This reflects that altcoins are still the main direction of capital game; second, although the size of altcoins has exceeded March 2024, and even reached the highest level in nearly three years, the weighted average funding rate peak of altcoins in this round of market is still much lower than that in March 2024. This shows that the bullish sentiment in the market is still in a state of mild fermentation.