After rising from October to March, the cryptocurrency market is currently consolidating, which is mainly benefiting Bitcoin (BTC) and Ethereum (ETH) holders.
However, they are now facing a severe adjustment similar to a bear market widely discussed on social media.
Bitcoin and Ethereum both dropped 15% from their annual highs, while Solana (SOL) and Avalanche (AVAX) are further declining from their March highs.
Additionally, in the last 7 days, SHIB’s price plummeted over 14% due to sellers defending the resistance level, dropping nearly 2% in the past 24 hours. Coinglass data shows SHIB’s liquidation amount exceeding $360,000, with bullish value at $308,000 and bearish value at $52,000.
On a month-on-month basis, the bearish indicators point to further decline. SHIB’s trading volume and holdings decreased by 16% and 2% respectively, with active addresses dropping from 4,600 to 3,200. The number of new addresses created also decreased from 1,330 to 1,140, highlighting bearish sentiment.
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However, due to the continuous unlocking and distribution of tokens, altcoins are facing serious dilution issues. For example, Arbitrum token (ARB) is close to its historical low despite continuous growth in market value.
The market’s interest in speculative assets has also weakened, as evidenced by the decrease in exchange trading volume and stablecoin balances. Seasonal trends also affect altcoins, with June historically being challenging. Data shows that over the past six years, the total market value of cryptocurrencies, excluding BTC and ETH, has continued to decline in November, with a decrease of X% this year.
Despite Bitcoin and Ethereum maintaining relative stability, the broader cryptocurrency market is facing significant challenges that disproportionately affect smaller cryptocurrencies. 