While Bitcoin continues to showcase its market dominance, altcoins are taking a serious beating. The altcoin market just shed a staggering $234 billion in value over a mere two weeks, marking one of the worst trading periods in crypto history. Talk about a brutal reality check for altcoin enthusiasts.
The numbers don’t lie, and they’re painting a pretty grim picture. With an average market performance of -3.4% since the February 2 crash, altcoins are struggling to keep their heads above water. Only 5 out of 21 altcoin sectors managed to outperform Bitcoin – not exactly a stellar showing for the supposed “next big things” in crypto. DeFi tokens are expected to see a major comeback as total value locked is projected to exceed $200 billion by 2025.
Meanwhile, Bitcoin’s just doing its thing, barely flinching with a modest 1.5% decrease during the same period. Trading around $97,750 and holding strong support at $95K, the original cryptocurrency continues to prove why it’s the heavyweight champion of the digital asset world. Experts believe Bitcoin’s growing adoption will continue as major wealth platforms are expected to recommend at least a 2% allocation.
Sure, its market cap dropped from its $2.1 trillion peak on January 21, but we’re talking about a mere 8.2% decline. That’s practically a yawn in crypto terms. The overall crypto market cap still stands impressively at $3.21 trillion, showing the sector’s substantial growth.
The liquidity landscape tells an interesting story too. Daily altcoin liquidity has nearly doubled since September, hitting $960 million. The top 10 altcoins are hogging 64% of the total market depth, while mid-cap tokens are losing their slice of the pie.
Smaller-cap altcoins, surprisingly, are gaining ground in the liquidity share department.
Looking ahead, Bitcoin’s projected to trade between $75,500 and $150,000 in 2025, with some optimistic souls eyeing $175,000 to $180,000. Ethereum’s got its sights set on breaking $6,000 at the cycle peak.
The Altcoin Season Index is hovering around 55 – neither here nor there, really. But here’s the kicker: if Bitcoin’s dominance support levels crack, we might just see another altcoin cycle. Though given recent events, maybe altcoin holders shouldn’t hold their breath.
