The crypto market keeps suffering. While bitcoin resists more or less, altcoins are collapsing. And CryptoQuant’s data is unequivocal: this drop could well be the worst of the entire cycle.
The blockchain analysis firm CryptoQuant sounds the alarm: according to its latest data, 38% of altcoins are today near their all-time lows, a level never reached since the collapse of FTX in November 2022.
As a reminder, at that time, the indicator “percentage of altcoins close to the ATL,” meaning their all-time lows, peaked at 37.8%. It now exceeds that, confirming that the current pain is unprecedented for this cycle.
The general context doesn’t help. In February, bitcoin fell by 14.85%, marking a decline of 47.28% from its October high. This pressure on the king of cryptos mechanically pulled altcoins down in its fall. Investors are fleeing risky assets, and liquidity is scarce.
The total market capitalization, excluding Bitcoin and stablecoins, has been continuously declining since early October. Altcoins remain in a zone of structural weakness, with no visible bullish catalyst in the short term.
The comparison with 2022 is telling. The collapse of the TerraUSD stablecoin, followed by cascading bankruptcies — Three Arrows Capital, BlockFi, then FTX — had plunged the sector into a deep crisis of confidence. Today, while the shock is different in nature, its scale on altcoins is comparable, even greater.
Added to this are global geopolitical tensions fueling a widespread risk aversion. In Iran, for example, crypto withdrawals jumped 700% after recent military strikes, illustrating market jitteriness in an unstable international climate.
Despite everything, analysts underline a point often ignored in capitulation phases:
Altcoins are going through their toughest trial by fire since the post-FTX era. The market seems to be eliminating the superfluous to keep only the essential. For seasoned investors, it is precisely at such moments that great opportunities arise, provided they know where to look.
