The altcoins start their 25th month in a bearish sentiment especially those belonging to smaller projects which started sliding since the start of 2018 as per the altcoin news analysis.
In 2020, there’s a lot of fear that ‘’the dumpening’’ will continue and a lot of the value will be erased from the altcoin market. Most of the altcoins start their 25th bearish month while in the past they experienced cyclical surges in price whenever Bitcoin started a bearish reversal pattern. The traders would pile into cheap tokens after the BTC crash hoping that the altcoins will increase in value shortly after. They would later sell off the altcoins to secure bitcoin gains but during the last two years, many assets seemed to have stopped going through those cycles with only a few exceptions. Most of the altcoins have crashed in dollar terms but also lost their position against BTC.
The altcoin season now hinges on the Bitcoin performance and the rallies in dollars are highly unlikely to deliver a lot of price changes which is only a sign that a true altcoin season has not arrived. The main reason is the expectation that the altcoins will decline further since the sector also keeps dropping low-quality projects and the ERC-20 tokens are being overlooked because of slow trading and regulatory issues. The traders are waiting for all to pass to see which projects will survive.
Etheruem as the most liquid altcoin failed to gain against BTC and the traders seem reluctant to boost the coin as they wait for both the network and the possibilities of whales selling and crashing the price. A few coins are still keeping up such as Litecoin and Bitcoin Cash that mostly rely on their vast exchange listings and don’t have a lot of activity. The other set of assets include Binance which went through periodic rallies as high as 60 percent but also had some heavy declines. VeChain can be included in this list as well, Cosmos and ChainLink.
The overall market cap of the smaller altcoins has dropped against other assets as in 2018 when the assets increased, the smaller coins made up more than 28 percent of the entire crypto sector market cap. The two-year slide is still fresh and the altcoins will rally further across the board. In the meantime, the crypto space gets older and forgotten projects get replaced with new coins and tokens.
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