Experienced analyst Darkvost reports that altcoins are still in a risky position in the market, especially after the recent global financial losses. In context, more than $1 trillion was wiped out of US financial markets on Friday due to weak sentiment around artificial intelligence and semiconductor stocks. The broad decline included losses of 2.6% in the S&P 500, 4.7% in the Nasdaq, and 4% in Bitcoin.
Two years later, altcoins continue to underperform the market
For altcoins, the rust is deeper, as this group of cryptocurrencies has been constantly struggling to rise since December 2024, showing little correlation with Bitcoin in the current cycle. according to DarkfeastThe recent decline indicates that 83% of these alternatives to Bitcoin are trading below the 200-day moving average (200DMA), which is a leading long-term indicator of price growth.
This suggests that investor sentiment towards altcoins is strongly bearish, as capital continues to be concentrated in Bitcoin. The analyst also points out that the current reading is among the weakest in the current market cycle. Since 2002, the share of altcoins trading below the 200DMA has largely remained within the 60%-90% range. This indicates structural weakness in the market, leading to significant underperformance across this market segment.
For context, the 200DMA represents the average closing price of an asset over the previous 200 trading days. It acts as a dynamic support or resistance level, and is a key measure of overall market health.
Altcoin woes translate into $520 billion loss
According to additional data shared by Darkvost, altcoin problems have also led to a significant loss in market value. The analyst notes that Tradingview’s TOTAL3 chart, which tracks the combined market cap of altcoins excluding Ethereum, has lost nearly $520 billion from its peak in October 2025, falling to about $670 billion.
The decline has effectively erased months of gains across the broader altcoin market, with TOTAL3 returning to valuation levels last seen in November 2024. The sharp downturn underscores the extent of capital flight from altcoins as investors increasingly favor Bitcoin amid ongoing market uncertainty.
However, Darkvost argues that periods of extreme pessimism have historically presented some of the most attractive opportunities for long-term investors. In contrast, periods in which approximately 90% of altcoins traded above their 200-day moving average – such as in March and December 2024 – often coincided with increased optimism and decreased upside potential.
The analyst also highlighted that the range expansion recorded during those periods was the strongest since 2017, reflecting an unusually broad participation across the altcoin market.
Featured image from Pi42, chart from Tradingview
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