Renowned cryptocurrency analyst Daan Crypto recently shared his view on the current status of altcoins. In the recent X post, the analyst commented on the fact that altcoins have declined in value to 40-90% and this is similar to previous market crashes but it is happening at a slower rate this time.
The current bearish trend affecting most alts has not been as sharp as the one witnessed at the start of the COVID-19 pandemic, but the outcome has not been much different for most tokens. Daan Crypto also pointed out that the current bearish move is relatively slow in comparison to previous ones but stressed that their highs are steep.
One of the noticeable changes in the current market compared to similar situations in the past, is that, in the case of altcoins, they did not rise nearly as high before the crash. As such, this observation is consistent with Daan Crypto’s assessment that the market is still ahead of where it is normally at this phase of the cycle, inclusive of BTC and other altcoins.
Altcoin Market Lags In Early Cycle
Looking at the 2023 performance, Daan Crypto attributed it to be very strong, especially for a first year after a bear market, as against the final months of 2019. He compared the year 2024 to the year 2020 which had initially fell in the middle of the year but was able to recover and even gain back more by the end of the year. The current year also resembles such a trend, which means that it is better to prepare for 2024 by taking into account this experience.
The analyst concludes that due to the market’s excessive bullishness during the start it is possible that more time is needed for supply to correct and begin to align with past cycles. The slow adjustment phase may be painful but it is considered a natural cycle that will eventually lead to a market rebound.
Daan suggested that enduring the current market conditions is crucial for the long-term health of the cryptocurrency ecosystem. Investors should brace for continued volatility and remain vigilant for future opportunities as the market evolves. This cautious optimism underscores the importance of patience and resilience in navigating the current market landscape.