Bloomberg: Crypto Market Faces "Alt Season" Headwinds
BlockBeats News, July 25th, according to Bloomberg, for most seasoned crypto traders, the "Altcoin Season" is almost a routine cycle. First, Bitcoin rises, sparking renewed interest in the digital asset market. Funds flow into this dominant cryptocurrency, while interest in "altcoins" gradually diminishes. Traders start looking elsewhere for higher returns, leading to new stories and narratives. Subsequently, funds rotate into lagging coins, bringing about outsized gains, a phenomenon that led speculators to coin the term "Altcoin Season" during the 2017-2018 bull market.
On July 14th, fueled by "Crypto Week" enthusiasm, Bitcoin reached a new all-time high before entering a narrow trading range. Key figures in the digital asset space and investors hailed Ethereum's breakout and the rebound of the long-suffering NFT sector as a turning point. However, this cycle has been more sporadic in nature rather than a broad-based altcoin boom. XRP surged over 60% since early July but retraced 11% on Wednesday.
Many of the most popular altcoins fall into a category known as "low float, high fully diluted valuation (FDV)" tokens. These tokens typically have high FDVs in the billions of dollars, but a closer look at their token distribution reveals that only a small portion of tokens are freely tradable.
This often makes these tokens more susceptible to market manipulation. These factors typically come into play in the late stages of a typical altcoin season—when speculation peaks, market exhaustion sets in, and prices often see a reversal. Although most crypto traders can now easily identify this pattern, hope still persists.
You may also like
What you bought on CEX is really not US stocks: Analyzing the 94% liquidation monopoly and the evaporation of equity under a five-layer pipeline
In such a crowded cross-border payment arena, where is the next stop for the future?
Why Is Bitcoin Down in 2026? What We Can Learn From 2022
The large models in the United States are moving towards closure in the name of security
From the white-haired stock god to the billionaire fund mogul, the smart people shorting Nvidia are all getting rich using the same framework
Morning Report | CoinEx becomes a key hub for Iran to evade sanctions, involving over $3.8 billion in funds; Kalshi seeks a new round of financing, with a valuation potentially rising to $40 billion
Global Launch: As predictions become the most scarce asset in the AI era, Manadia is defining the next generation of the value internet
Why do cryptocurrency projects always like to change their names?
Who is footing the bill for the $64 billion accounting frenzy?
I never expected that the first application of AI x Crypto would be in security auditing
What is your view on Binance's competitive advantages?
ETH has entered a non-consensus phase, and the turning point is approaching!
The shift in the cloud of the air: from despising stablecoins a year ago to the high-profile entry of capital today
The survival dilemma of small and medium exchanges behind the withdrawal anomalies exposed by AscendEX
Why Is Bitcoin Falling Below $60K? 5 Key Market Drivers Explained
Bitcoin has dropped sharply amid ETF outflows, Strategy stock weakness, AI stock rallies, and changing Fed expectations. Explore the key forces driving BTC’s latest correction and what traders should watch next.
