Many individuals may need assumed that the crypto bear market is one thing that began in February. Nonetheless, a evaluation of the charts reveals an extended historical past of sobering statistics.
Actually, altcoins have been on the decline since December 8.
Proof of a bear market is in all places this week. CoinMarketCap’s Worry and Greed index is at a decisively bearish 26, whereas different indices, equivalent to crypto market sentiment and “Altcoin Season” sit at equally dismal 27 and 24 ranges, respectively.
Not solely that, on Tuesday, spot bitcoin (BTC) ETFs skilled their worst single day of outflows in historical past.
Rewind to January, nonetheless, and barely anybody predicted such a downturn. Certainly, the market capitalization of crypto belongings on the whole remained inside 3% of its all-time excessive throughout Donald Trump’s January 20, 2025 inauguration.
Nonetheless, a more in-depth have a look at this obvious resilience reveals that BTC did many of the heavy lifting, marking its all-time excessive close to $108,800 on that exact day.
All different crypto belongings, in distinction, had already been in a bear marketplace for six weeks by the day Trump took workplace. Certainly, the market cap of altcoins peaked at $1.9 trillion on December 8, 2024, and has by no means regained that stage.
By early Wednesday morning, altcoins had declined greater than one-third and have been price lower than $1.2 trillion.
Three months of decline in altcoins
The roots of this newest bear market stretch a lot additional than February 2025. Actually, it’s practically a fiscal quarter in length.
By Wednesday, altcoins had declined greater than one-third to lower than $1.2 trillion.
Though bitcoin’s outperformance quickly hid the market’s downturn in early December, the day of Trump’s inauguration was clearly the day when buyers had absolutely priced of their bullish expectations through BTC.