2025-12-24 23:22:59

The cryptocurrency market has been a bit tough lately. Since September, the altcoin index has fallen over 30%, and many people are shaking their heads at this number. But do you know? Some signs of a turnaround are actually brewing.

I've been in this circle for a few years, and recently, after chatting with several veteran investors, I found everyone's feelings are surprisingly consistent—the market software shows a landscape of altcoins experiencing a "flash in the pan" trend. Occasionally, a few follow Bitcoin and Ethereum's rebound, but if you're a bit slow to react, you're already caught in a trap. This situation indicates one thing: altcoins are still in a downward oscillation. However, history has taught us that the most desperate times in the market are often the starting points for new opportunities.

**How bad are altcoins right now?**

Data doesn't lie. The ratio of total market cap of altcoins to Bitcoin's market cap has fallen to a multi-year low, and the small-cap token index has directly dropped back to its lowest point since November 2020. This is a world apart from the crazy days of 2021—back then, as long as a project was packaged as DeFi or NFT, it could multiply several times in minutes. And now? Even though Bitcoin has risen more than sevenfold from its lows, breaking through $126,000, most altcoins still look lackluster, and their relative price compared to Bitcoin has fallen to a four-year low.

**Why are high-end assets attracting capital while small tokens are being neglected?**

Liquidity is gathering in the highest-value areas. Institutional funds are pouring into Bitcoin and Ethereum ETFs, but this money hasn't spread into ordinary altcoins. Conversely, the MarketVector Digital Asset Small Cap 100 Index's return over the past five years is about -8%—and what does this number tell us?

BTC0.32%

ETH-0.18%

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Whale_Whisperer

· 11h ago

It's the same old "despair is just an opportunity" saying, hearing it so much that my ears are calloused. Honestly, it's just self-soothing for being trapped. --- Bitcoin at 126k didn't even move altcoins, which just shows retail investors have no money. --- A -8% return over five years haha, I just want to ask, has anyone ever lost 90% on small caps of 100? --- Institutions are bleeding BTC and Ethereum, retail investors should wake up. Stop dreaming about NFTs and DeFi. --- The "despair starting point" theory can be used anytime, whether during a 35% drop or a 60% drop, it's always the same phrase. Laughing to death. --- Wait, aren't those who are trapped now supposed to buy the dip, or continue to wait? I really want to know how the author is actually operating. --- Something feels off. If liquidity is flowing to the top, it really means there's no signal of a turnaround, right? Isn't this logic reversed? --- Small coins are now just a casino; the real money has long moved to BTC. --- It's easy to criticize after the fact. Wait for altcoins to rebound before writing articles titled "I knew it would turn out like this."

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SeasonedInvestor

· 12h ago

Altcoins are really suffering this time, but I think the problem isn't with the coins themselves, it's simply that no one wants to take the risk. Institutions have all moved to pile into BTC and ETH, and small-cap coins with no liquidity are just waiting to die. Anyone can see this logic. On the contrary, I find it a bit strange that some still talk about "new opportunities and starting points." To me, it looks more like a dead end. We've already touched the bottom, with a -8% return over 5 years... just hearing about it is uninspiring. The crazy momentum from 2021 probably won't come back. Now, even when prices are pushed up, no one is following the trend.

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BridgeTrustFund

· 12h ago

Altcoins are really having a tough time this wave, but I think it's finally time to buy the dip. --- BTC just started to rise, and you're already calling it a turning point? I see these small coins still dead in the water. --- Liquidity is flowing into Bitcoin, small-cap coins can only accept their fate. This pattern couldn't be clearer. --- Looking back at the crazy wave in 2021, it was all about hype—DeFi and NFTs could double your money with a little packaging. Now? Wake-up call. --- People say that despair is an opportunity. I'm too timid... It really takes guts to buy the dip at this point. --- Five years of negative returns make me want to curse. Why are people still trading small-cap coins? --- Institutional bloodsucking is fully reflected in BTC's gains. Small coins are just there as a backdrop. --- If you're daring enough to buy altcoins now, you're either foolish or you've seen something I haven't. --- The price has fallen to a four-year low, and this number sounds utterly hopeless...

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