Altcoin prices drop by 80%: An unprecedented cycle
In this new year, hopes for altcoins have started to fade. Instead of a strong bull run, most altcoins have fallen more than 80% from their historical highs. The market is showing a peculiar cyclical pattern, leading analyst Michael van de Poppe to state that this cycle does not follow any traditional rules.
The cryptocurrency market is entering an unprecedented phase, which cannot be easily compared to previous cycles. Old technical models are no longer applicable.
Is the Altcoin facing extinction?
This is an important question, as the market continues to fall freely without a clear recovery trend.
In the context of high expectations this year, the decline has reached 80% from the peaks of many projects… pic.twitter.com/iRcXra01cX
— Michaël van de Poppe (@CryptoMichNL) June 21, 2025
He believes we are in a similar situation to late 2019 or late 2020. That was a time when altcoins hit their bottom before starting a new growth phase. Previous historical cycles, such as in 2016 and 2019, have shown that altcoins often hit bottom when global conditions are unstable, while gold shows strength.
Currently, the global economic picture remains chaotic, gold is increasing in value while the cryptocurrency market is quite cautious, as evidenced by the silent accumulation of investors in low-priced coins.
Why hasn't altcoin bounced back?
Although Ethereum has just increased by about 40% compared to Bitcoin, most altcoins have not followed this trend. Van de Poppe analyzes that this stems from a lack of trust and positive sentiment within the cryptocurrency community. In a chaotic market, just a small amount of selling is enough to pull the coin prices lower.
There are also some investors quietly accumulating coins, gradually gathering small amounts of capital at the current low prices, preparing for the next growth phase.
What needs to happen next?
Van de Poppe believes that the turning point of the market largely depends on the movement of Bitcoin. If Bitcoin hits bottom soon and heads towards around 106,000 USD, it is highly likely that Ethereum will also rise, creating excitement for the overall altcoin market.
Then, short positions could be quickly liquidated, pushing coin prices up sharply and accelerating further. The cryptocurrency market is waiting for a clear signal to bounce back, possibly a new fiery bull run.
Source: https://tintucbitcoin.com/thi-truong-altcoin-chet-hay-cho-thoi/
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