Altcoin Market: What Phase Are We In Now, According to a Top Crypto Expert?

• Understanding the Altcoin Market Cycle: Where Are We Now?
• The Psychology Behind Market Cycles: Wall Street Cheat Sheet
• Bitcoin Dominance: The Altcoin Barometer
• Historical Precedents: From Depression to Bull Runs
• Why This Time Could Be Different (Or Not)
• FAQs: Navigating the Altcoin Depression Phase

The crypto markets have been under pressure for months, leaving investors wondering where we stand in the altcoin cycle. Renowned analyst Michaël van de Poppe argues we’re in the "depression phase"—the final stage before a potential bull run. With altcoin valuations at historic lows and sentiment bleak, this could be the calm before the storm. Dive into the psychology of market cycles, historical patterns, and why patience might soon pay off.

Understanding the Altcoin Market Cycle: Where Are We Now?

The crypto market moves in cycles, and recognizing the current phase is crucial for investors. According to Michaël van de Poppe, a respected crypto analyst, altcoins are now in the—a period marked by exhaustion and despair after prolonged declines. This phase follows panic and anger, where investors feel hopeless, often saying things like, "My retirement savings are gone" or "How will we recover from this?" Historical data from TradingView shows that during similar phases in 2018 and 2020, altcoins eventually rebounded dramatically, rewarding those who held steady.

The Psychology Behind Market Cycles: Wall Street Cheat Sheet

Van de Poppe references the, a classic diagram mapping investor psychology across market cycles. The depression phase typically signals the bottom, characterized by:

• Abandoned projects (e.g., many DeFi tokens faded in 2022)
• Low trading volumes (CoinGlass data shows a 60% drop in altcoin activity since Q1 2024)
• Media silence (fewer headlines about "the next big altcoin")

Yet, this phase often precedes recovery. For instance, Ethereum’s 90% drop in 2018-2019 was followed by a 1,200% rally. The key? Recognizing despair as a contrarian indicator.

Bitcoin Dominance: The Altcoin Barometer

Van de Poppe emphasizesas critical for gauging altcoin health. When Bitcoin’s dominance peaks (currently ~55%, per TradingView), altcoins usually underperform. However, once BTC stabilizes, capital rotates into altcoins—a pattern seen in 2016, 2020, and late 2023. For example:

• Solana (SOL) surged 10,000% post-BTC consolidation in 2021
• Chainlink (LINK) rallied 1,500% after BTC’s 2019 rebound

This time, macro factors like Fed rate cuts could accelerate the shift.

Historical Precedents: From Depression to Bull Runs

Past cycles suggest the depression phase is the. Consider:

• 2015: Litecoin (LTC) bottomed at $1.11, then rose 12,000% by 2017
• 2019: Binance Coin (BNB) hit $4, later peaking at $690

The common thread? Extreme pessimism gave way to disbelief, then euphoria. Data from CoinMarketCap shows altcoins’ average ROI 12 months post-depression is ~800%.

Why This Time Could Be Different (Or Not)

While history rhymes, unique factors shape this cycle:

• Institutional involvement: ETFs and TradFi players may dampen retail-driven volatility
• Regulation: Clarity (or lack thereof) from the SEC could accelerate/delay recovery

Still, the BTCC research team notes that altcoins’ inflation-adjusted valuations are now at 2016 levels—a potential springboard.

FAQs: Navigating the Altcoin Depression Phase

How long does the depression phase typically last?

Historically, 6–18 months. The 2018–2019 phase lasted 14 months before altcoins rebounded.

Which altcoins perform best post-depression?

Projects with strong fundamentals (e.g., Ethereum, Solana) and low-caps with niche utility (e.g., Oracles, DeFi bluechips) often lead recoveries.

Should I buy altcoins now?

This article does not constitute investment advice. However, dollar-cost averaging into proven projects has worked in past cycles.