CryptoQuant data shows the current altcoin pullback exceeds the FTX collapse aftermath, with 38% of tokens trading near record lows despite Bitcoin holding above $66,000.
Nearly four in ten altcoins are trading close to their all-time lows, marking the deepest pullback of the current market cycle and surpassing even the aftermath of the FTX collapse in late 2022.
CryptoQuant analyst Darkfost published data on March 3 showing that 38% of altcoins are now trading near their all-time lows. This figure exceeds the 37.8% recorded after the FTX collapse in November 2022, making it the most severe altcoin regression of the current cycle.
The data highlights a persistent liquidity problem. While Bitcoin has held relatively firm above $66,000, capital has not spread into the broader altcoin market. According to Darkfost, "the overall environment remains unfavorable for risk-taking, and the first sector to bear the consequences is the cryptocurrency market, particularly altcoins."
The divergence between Bitcoin and altcoins tells a stark story about where institutional and retail capital is flowing. Bitcoin continues to attract demand through spot ETFs and its status as a macro hedge, while smaller tokens struggle with weak on-chain activity and declining trading volumes.
This dynamic mirrors a broader risk-off sentiment across global markets, amplified by geopolitical tensions in the Middle East and tighter financial conditions. For altcoin holders, the data confirms that the long-anticipated "altcoin season" has yet to materialize in this cycle.
Darkfost noted a silver lining: "It is precisely when conditions deteriorate significantly that opportunities also begin to emerge." The post-FTX bottom in late 2022 ultimately preceded one of the strongest rallies in crypto history. Traders are watching for a shift in Bitcoin dominance and a pick-up in altcoin trading volumes as potential signals that rotation could begin. A decisive move by Bitcoin above $70,000 could also free up capital to flow down the risk curve.
The altcoin market is enduring its harshest conditions since the FTX fallout. Whether this marks capitulation or a deeper structural shift remains an open question. This is a developing situation.
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