Crypto markets have declined more than 5% over the past seven days as $150 billion has left the space, primarily from low-cap digital assets.
However, this altcoin decline has been going on for months, according to the chief analyst at Real Vision, Jamie Coutts.
“Smaller cap crypto assets have been taking it on the chin since March high of this year,” he said in a post on X on June 13.
Additionally, the past three months have seen the “Top 200 equal weight index fall 33% vs. the Market Cap index, which is down around 12%,” he added.
No Altseason In Sight
The analyst drilled down by sector noting that infrastructure and applications were down around 40% while smart contract, currency, and DeFi assets were down over 30% since March.
He added that if this is a regular mid-cycle correction, “expect some opportunities to be had in the mid and small caps once the market settles.”
Market Update: Smaller cap #crypto assets have been taking it on the chin since March high of this year. The past 3 months have seen the Top 200 equal weight index fall 33% vs. the Market Cap index, which is down around 12%.
This is the breakdown of the 3-month sector returns… pic.twitter.com/npHS2BPoOl
— Jamie Coutts CMT (@Jamie1Coutts) June 13, 2024
“Despite further evidence stateside inflation is dampening, altcoins continued their brutal sell-off,” stated Bankless in a note to investors on June 13. 70 of the top 100 tokens are down more than 10% on the week, with 20 down more than 20%, it added.
Overall, crypto markets have fallen 11.5% since the total capitalization high of $2.89 trillion in mid-March.
In an email to investors on June 14, FxPro senior market analyst Alex Kuptsikevich predicted more pain:
“Risk demand is gradually diminishing, forming a sequence of declining intraday highs. However, horizontal support remains in the $2.42 trillion area, where the market also stabilized from May 17th to 20th.”
Altcoin Pain Is Normal
On June 13, crypto market analyst ‘Jelle’ observed that Bitcoin is only 9% away from its all-time high but altcoins are around 70% down before adding “this is normal.”
“As soon as BTC enters price discovery, alts will rally hard,” they added.
Seeing lots of people talk about how bad altcoins are doing compared to Bitcoin.
BTC is 9% away from all-time highs, and altcoins 75% — but this is normal!#Bitcoin leads, and #Altcoins follow, just like in 2020.
As soon as BTC enters price discovery, alts will rally hard. pic.twitter.com/RO0DNYf5cS
— Jelle (@CryptoJelleNL) June 13, 2024
Technical analyst ‘Moustache’ painted a grimmer picture for altcoins, however, observing that they have been in decline since the last cycle peak in 2021.
Either way, there won’t be much love for altcoins until Bitcoin breaks out of its range-bound channel, where it has been trading since early March.
