Why the Altcoin Market Cap Decline May Deepen in October
Altcoin market capitalization is declining due to increased exchange inflows and weakening stablecoin buying power, potentially worsening in October.Summary
The altcoin market capitalization has dropped significantly in October, driven by rising sell pressure indicated by a year-to-date high in altcoin inflow transactions sent to exchanges, surpassing 70,000. This suggests investors are preparing to sell or rotate assets, although some suggest it could signal preparation for rotation. Compounding this, stablecoin inflows to exchanges are sharply decreasing, signaling diminished buying power. Furthermore, the USDT.D index has risen above 5%, indicating that Tether dominance is increasing following recent liquidations, a pattern historically coinciding with sharp altcoin declines. Despite these bearish signals suggesting the downturn may deepen, one technical analyst suggests altcoins might be nearing a cycle bottom, citing a rare MACD cross signal that has historically preceded major altcoin supercycles.
(Source：BeInCrypto)