Altcoins Feel The Pinch As Crypto Market Sentiment Sours


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The crypto market slipped into a risk-off mood over the weekend as the Crypto Fear & Greed Index fell to 44, moving from Neutral into Fear.

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Traders Shift Toward Large Caps

Santiment said a heavy focus on large-caps can signal more cautious behavior among traders. Based on reports, that pattern was visible on Saturday when market activity narrowed and attention tightened around the biggest tokens.

According to data firm Santiment, traders are pulling money out of obscure altcoins and putting it back into major names like Bitcoin, Ether, and XRP.

Bitfinex analysts added that a broader return of momentum to smaller coins may wait until more spot crypto ETFs launch later this year.

Total crypto market cap currently at $3.82 trillion. Chart: TradingView

Price Moves Are Mixed

According to Coingecko, Bitcoin is down 5% over the past month while Ether has risen 9% over the same period. The wider altcoin group is under pressure, even as a few tokens show isolated strength.

CoinMarketCap’s Altcoin Season Index stood at 56 on Sunday, a level that technically meets the threshold for Altcoin Season when comparing the top 100 altcoins versus Bitcoin over a 90-day window.

Altcoin Season And The Shakeout

Some traders see the current pullback as a cleansing move. Trader Rekt Fencer said, “This is the final shakeout for altcoins,” pointing to falling volumes and nervous sentiment.

That view is echoed by other market watchers who note that lower volumes can exaggerate price swings and make smaller tokens more volatile.

Meanwhile, traders waiting for new inflows say they are watching ETF rollouts as a potential trigger for renewed interest in lower-cap assets.

Short-Term Risk Views And Cycle Warnings

Market technician Daan Crypto Trades described Bitcoin’s price action as “undecisive” and warned it could sweep monthly lows to flush out late long positions.

The analyst added that such a move should then cause some fear of it losing $100,000. Other analysts urge caution about drawing firm patterns from past cycles.

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PlanC warned that relying on just three previous halving cycles is misleading, writing that anyone who expects Bitcoin to have to peak in Q4 this year “does not understand statistics or probability.”

Michael van de Poppe offered a counterpoint, arguing that altcoins are “extremely undervalued” versus past cycles and that 2025 may play out very differently.

Featured image from Meta, chart from TradingView





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