According to Foresight News, Bloomberg reports that the altcoin market is currently $800 billion below historical cycle predictions, with a shift in retail sentiment being a major factor. 10x Research's latest estimates indicate that non-Bitcoin tokens are experiencing a capital supply shortage this cycle, particularly as South Korean retail investors pivot towards crypto-related stocks, while Bitcoin benefits from institutional inflows. Markus Thielen, CEO of 10x Research, noted that if retail investors, especially in South Korea, had not shifted their focus to crypto-related stocks, the altcoin market capitalization would be approximately $800 billion higher.
Between November 5 and November 28, 2024, the average daily trading volume on South Korean crypto exchanges was about $9.4 billion, compared to $7 billion on the Kospi. Following this period, trading volumes significantly declined. 10x Research suggests that the subdued sentiment among South Korean traders is a key factor in the underperformance of altcoins, potentially indicating further declines. Recently, altcoins have been hit hardest by a major sell-off in the crypto market, triggered by escalating U.S.-China trade tensions, with approximately $131 billion of the $380 billion market capitalization concentrated in altcoins.
