Ah, October. The month that brings spooky pumpkins and equally terrifying market drops. The crypto market has been no exception, with altcoin market capitalization plummeting a delightful 15%, and the month’s still got a few days left. Could things get worse? It’s the gift that keeps on giving!
Recent data and analysis offer us a peek into the cryptic abyss, helping investors gauge the risks of this rocky month. Spoiler alert: It’s not looking like a Halloween miracle for altcoins.
Over 70,000 Altcoin Inflow Transactions Could Deepen the Decline
It’s not just that altcoins are throwing tantrums because the market’s unstable. No, no – the real reason is the ever-looming sell pressure and waning demand. A true horror show.
Take this: the number of altcoins being sent to exchanges has skyrocketed to its highest level this year. It’s as if everyone’s rushing to the exit. Data from CryptoQuant tells us that altcoin inflow transactions have surged past 70,000 in the past week alone. This isn’t the first time we’ve seen this spike. Remember earlier this year? Yeah, Bitcoin and altcoins didn’t fare so well after that. Welcome to déjà vu, but with more pain.
“Transactions sending alts to exchanges just hit a new YTD high, signaling rising sell pressure – or traders gearing up for the next big rotation,” Coin Bureau quipped. Sure, let’s hope it’s the latter, but reality says otherwise.
And yet, all this coin-moving to exchanges might just be a redistribution, not a straight-up crash. But wait, there’s more! The stablecoin situation adds another layer to this juicy cake of confusion.
Weakening Stablecoin Inflows Signal Diminished Buying Power
CryptoQuant’s Stablecoin CEX Flow data shows that netflows are still positive, but they’ve dropped more than your hopes for altcoins this month. Since mid-September, it’s like everyone’s forgotten stablecoins even exist. They’re hardly trickling onto exchanges anymore, and it’s looking like they’re about to hit zero in October.
Fewer stablecoins equals less buying power, and with more altcoins flooding the exchanges, it’s a perfect storm for pushing prices even lower. It’s almost like a bad Netflix series: you know the plot, you don’t care about the characters, and you’re just waiting for the inevitable.
Remember late 2024? Yeah, a similar drop in stablecoin netflows led to a full-on market correction. Oh, the good ol’ days…
And the USDT.D index? That’s not helping. It’s above 5%, indicating that stablecoins are basically taking a nap instead of trying to prop up altcoin prices. Talk about abandonment.
Altcoin Vector sums it up: the USDT dominance surge? It means we’re probably about to see more altcoin losses. “Good times” ahead.
“The tight dance between Alts and liquidity has misstepped. The recent deleverage event pushed USDT dominance higher, and historically, every such move has coincided with sharp declines in Alts,” Altcoin Vector remarked. Sounds like a sad country song, doesn’t it?
Signs of a Potential Bottom Amid Broader Weakness
Okay, okay. So the market’s a disaster. But wait! Are there signs of hope, or is it all just the crypto version of a horror film where no one survives? Well, according to Merlijn, the technical analyst with more confidence than a seasoned poker player, altcoins might just be nearing a cycle bottom. Ah, the sweet sound of potential recovery… or so we hope.
Merlijn points to the MACD cross signal, which has appeared only three times in the last eight years. And each time? A shiny new altcoin supercycle! Hooray, maybe the tide is turning. Or not.
ALTCOINS ARE FLASHING A CYCLE-LEVEL BOTTOM.
Third MACD cross in 8 years.
Each one marked the start of an altcoin supercycle.This is how generational trades begin.
Before the noise. Before the hype.– Merlijn The Trader (@MerlijnTrader) October 19, 2025
Historical patterns say rallies follow such moments. But don’t pop the champagne just yet – the market’s a tricky beast, and optimism must be handled with care. Who knows? The market might surprise us all – just like a plot twist in a bad thriller.
As October rolls on, investors will have to juggle both the bleak indicators and the faint hope of a market turnaround. One thing’s for sure: this month’s volatility has all the potential of a classic market rollercoaster – and you’re stuck in the front row. 🎢
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2025-10-20 11:30