Especially since the price action remains under a descending resistance line. Read the best crypto stories of the day in less than 5 minutes. As a reminder, in early 2026, Santiment recorded minimal interest in altseason.
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The current figure exceeds that level by 2%, highlighting deeper market stress. Trader behavior with altcoins shows the crypto market is still chosen for risky directional bets, though most are happening in the background, and the main focus is on Bitcoin. As of March 26, the altcoin season index moved up to 51 points, with almost a perfect balance between BTC and other assets. The major risk for those tokens is that short positions may be liquidated by deliberate targeting. Most of the shorted tokens show overall bearish signals, making traders confident in shorting.
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CUSIP Database provided by FactSet Research Systems Inc. SEC fillings and other documents provided by Quartr.© 2026 TradingView, Inc. However, this accumulation may reflect a short-term relief phase rather than a confirmed reversal.
The crypto market is under pressure as geopolitical tensions and volatility weigh on risk assets, with altcoins taking the strovemont capital review hardest hit. Over 40% of altcoins are now at or near all-time lows, exceeding the 38% seen in the last bear market. Oversupply and liquidity dilution, more than 47 million tokens across chains like Solana, Base, and BNB Smart Chain, make altcoins fragile. While underperformance is widespread, it also creates opportunities for investors who can identify strong, resilient projects with long-term potential.
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Both have moved crypto prices in the past, and with sentiment low and altcoins under pressure not seen before in this cycle, market participants will be closely watching this coming week. According to them, that increase led to a dilution of liquidity, as it had to be spread across a wider set of assets, leaving smaller tokens with little, if any, trading activity and weaker price support. Relative to the previous cycle, current conditions are slightly more severe though. During the last downturn, about 38% of altcoins fell to or near all-time lows before establishing a base and reversing higher.
Bitcoin has fallen roughly 45% from its all-time high — painful, but modest compared to what has happened further down the market cap rankings. That structural problem is now showing up in the numbers in a dramatic way. Data from CryptoQuant shows that over 40% of all altcoins are currently trading at or near their all-time lows.
- Both have moved crypto prices in the past, and with sentiment low and altcoins under pressure not seen before in this cycle, market participants will be closely watching this coming week.
- This is where Matt Hougan’s analysis, Chief Investment Officer at Bitwise, makes perfect sense.
- Trading, buying or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their own research before making any decisions.
The monthly average outflow among the top 10 transactions is also showing growth. Since mid-February, it has climbed from around 2,000 LINK to nearly 2,600 LINK per day.
The scale of the drawdown is now bigger than what was seen during the last bear market, raising new concerns about liquidity and demand across the sector. A breakout above this level, followed by sustained upward movement, would confirm building demand. Such a shift could drive broader market recovery and amplify momentum in the market’s best performers this quarter. AMBCrypto further grouped these assets by three-month performance to identify segments likely to attract capital. Consider this – The 90-day Altcoin Season Index, which tracks performance outside Bitcoin, has held relatively firm despite the broader market’s decline. That gap between Bitcoin and the broader crypto market is a defining feature of this particular downturn.
Just like the shorted tokens, those assets were trading near all-time lows, expecting an eventual breakout. Long positions may face smaller risks, as the assets have mostly traded sideways over the past months. Altcoins are still inviting risky traders to take strong directional bets. According to Alphractal data, there are clear-cut categories of altcoins with minimal long/short ratios and a predominance of short positions. Geopolitical tensions and macroeconomic volatility weigh on all risky assets, but altcoins bear the brunt more violently than Bitcoin or large caps. This retracement phase of altcoins is harsher than that of the last crypto bear market.
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions. The Crypto Fear and Greed Index is standing at 8, showing “extreme fear.” The metric has been in that zone for nearly two months, with the period coinciding with reduced participation and lower conviction among traders. This page lists the top 100 cryptocurrency coins by market cap.