Crypto Market Movers
By Evie Vavasseur
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Limited Tradable Supply Exposes Market Weakness. Crypto analyst Michaël van de Poppe has highlighted one key reason behind the severe altcoin slump…
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Bitcoin Dominance Continues to Rise. Another major factor driving the current weakness in altcoins is the steady rise in Bitcoin…
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U.S. Liquidity Crunch Deepens Market Pressure. Beyond crypto-specific dynamics, broader macroeconomic factors are also weighing heavily on the…
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What Could Come Next for Altcoins?. Despite the widespread selling and negative sentiment, many analysts believe that the current…
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The Bottom Line. The current crypto crash reflects a combination of limited supply liquidity, rising Bitcoin…
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The cryptocurrency market is currently enduring one of its toughest phases in months. While Bitcoin (BTC) has managed to maintain some stability, most altcoins are witnessing…
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Analysts point to a combination of factors — including limited tradable supply, rising Bitcoin dominance, and tightening U.S.
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In simple terms, many altcoins have a large portion of their total supply locked up in staking, smart contracts, or long-term holding.
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For instance, if a large holder decides to sell just 2% of the total token supply, order books may struggle to absorb that amount in such a thin market.
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“Altcoins have become extremely volatile because of low liquidity,” said van de Poppe. “But volatility works both ways — when conditions improve, these assets tend to bounce back…
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He adds that traders should stay patient, as historical cycles show that altcoins often lag behind Bitcoin before experiencing powerful rallies once sentiment shifts.
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Another major factor driving the current weakness in altcoins is the steady rise in Bitcoin dominance — the metric that tracks Bitcoin’s share of the total crypto market…
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Data shows that Bitcoin dominance has broken out of a months-long ascending channel, signaling that capital is flowing out of altcoins and back into Bitcoin.
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If Bitcoin dominance continues to climb above 60.5%, analysts expect further pressure on altcoins.
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Van de Poppe compared the present situation to late 2019, when Bitcoin remained strong while altcoins suffered prolonged declines.
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