Despite Bitcoin's decline of 10% in October, Capriole Investments' altcoin speculation index remains stable at around 25%, indicating that speculative activity in the altcoin market is holding steady. This stability suggests that market participants are in the early stages of re-entering the market, and despite a cautious macroeconomic outlook, investors are selectively turning to higher-risk crypto assets. The altcoin speculation index tracks the proportion of speculative altcoins in the total market capitalization of cryptocurrencies, and currently, this index is far below the typically optimistic level of over 60%. The index stands at 25.4%, which implies that there is still room for risk appetite to increase before the market becomes overheated. Breadth indicators show limited participation in some altcoins, but there is still potential for recovery. Capriole Investments' CryptoBreadth50 and CryptoBreadth200 indices are at 11.2% and 6.3%, respectively. This limited participation typically reflects ongoing risk-averse sentiment, but if Bitcoin begins to pull the market higher, it could also signal a broader recovery on the horizon. Furthermore, the total market capitalization of TOTAL3, excluding Bitcoin and Ethereum, is currently only 17% lower than its all-time high, highlighting the relative resilience of the entire altcoin market. Overall, although speculative activity remains sluggish and market breadth is weak, stable market sentiment and the solid performance of altcoins may suggest that astute investors are quietly preparing for the next round of expansion. Bitcoin's market share has recently declined, dropping over 7% in the past six months to 57.8%, reigniting discussions about whether the altcoin market is poised for a new round of expansion. Cryptocurrency analyst Matthew Hyland points out that the continued decline in Bitcoin's market share reflects a weakening growth momentum, and he referred to the recent rebound as a 'dead cat bounce in a downtrend.' Hyland believes that the volatility in Bitcoin's price could be a 'manipulation' by traditional financial institutions preparing for the next phase of expansion. Nevertheless, broader indicators such as the altcoin season index remain sluggish, holding at 41/100, still within the range of 'Bitcoin season.' However, Kamal Mokeddem of Finality Capital believes that the lack of a broad-based altcoin rally does not indicate a recession but rather signifies its maturation. Mokeddem points out that altcoins are 'evolving from speculative chips to foundational business tools,' driving the entire industry towards adopting Web3 technology. This article does not contain any investment advice or recommendations. All investment and trading activities involve risks.

#BTC #ETH