Altcoin Cycle Hits ’Depression Phase’—Top Analyst Says Now’s the Time to Buy the Dip

Crypto markets are bleeding—but one analyst sees opportunity in the carnage. According to a leading strategist, altcoins have entered the 'depression phase' of their cycle. That means two things: pain for weak hands, and a potential golden entry for contrarians.

When Fear Becomes Fuel

The market's current freefall isn't just panic—it's textbook psychology. Every crypto cycle follows the same script: euphoria, denial, capitulation, depression. We're at stage four. History says what comes next could shock the skeptics.

Timing the Bottom (Because Wall Street Can't)

Traditional finance is still busy writing 'crypto obituaries'—same as they did during the 2018 winter. Meanwhile, chain analytics show whales accumulating at these levels. Funny how the 'smart money' always moves when CNBC starts laughing.

This isn't financial advice—just a reminder that fortunes get built when blood's in the streets. Even if that blood is from paper-handed hedge funds.

Key Insights:

• Michaël van de Poppe identified that the altcoin cycle entered a depression phase in July 2025.
• Bitcoin’s performance and macroeconomic factors lowered investor confidence across the crypto market.
• Past trends suggest the depression phase may lead to a potential recovery and altcoin growth.

Crypto analyst Michaël van de Poppe stated that the altcoin cycle had entered the depression phase.

According to the market pundit, macroeconomic conditions and Bitcoin’s performance had lowered investor sentiment in the crypto market.

This drop in sentiment has been proven to influence the overall direction of the crypto market.

Altcoin Cycle Decline Signals Crypto Market Depression

The altcoin cycle entered a new low in July 2025, according to analyst Michaël van de Poppe.

It is worth noting that he shared this on X, noting that the crypto market had entered the depression phase of its cycle.

His post included the well-known Wall St. Cheat Sheet chart, which tracks investor emotions during market shifts.

van de Poppe explained that the decline in Bitcoin prices had influenced the rest of the market.

He pointed to macroeconomic challenges such as inflation and changing interest rates as key reasons behind this trend.

These factors, he noted, had placed downward pressure on Bitcoin, which then affected altcoins.

The depression phase is characterized by low confidence, declining prices, and widespread pessimism.

On the chart, this stage includes comments like “This is a sucker’s rally” and “How can we pay all this debt?”

Michael van de Poppe placed the current market in this stage, suggesting that the altcoin cycle had reached its most negative point.

It is important to add that he highlighted that this phase, although difficult, had in the past come just before signs of recovery.

The end of the depression stage often leads to hope and Optimism as markets begin to rise again.

He suggested that altcoins might follow this historical pattern in the coming months.

Bitcoin’s Struggles Reflect Broader Conditions

It is important to state that van de Poppe identified bitcoin as the main driver of the altcoin cycle and general crypto market movements.

He stated that Bitcoin’s response to macroeconomic signals had pulled altcoins into the depression phase.

Global concerns such as inflation and central bank decisions have made Bitcoin more vulnerable to market forces.

Reports from Fidelity Digital Assets had also described Bitcoin as a “macro asset.”

The report linked its performance to data like GDP, employment figures, and inflationary trends.

With these global indicators facing pressure in 2025, Bitcoin had weakened, taking altcoins down with it.

Past crypto market activity supported this kind of movement. In the altcoin cycle from February to May 2021, the assets gained sharply following a slow period for Bitcoin.

During that time, large-cap altcoins saw a 174% rise, while Bitcoin grew by just 2%.

This pattern, van de Poppe explained, could repeat itself if capital started to MOVE back into altcoins.

Community Views and the Possibility of Recovery

Meanwhile, the post generated several reactions on X, showing a wide range of views on the current altcoin cycle.

Some crypto market investors believed the depression phase offered chances for long-term positions.

For example, they described it as a period of generational entries for investors willing to wait.

Recall that Billionaire financial advisor Robert Kiyosaki recently commented on acquiring more Bitcoin in case it crashes.

Others offered a different view to wade into the market direction. One user argued that the crypto market might already be in a stage of early recovery.

The user noted that this phase could appear like depression, which might confuse investors and lead to missed opportunities.

van de Poppe’s altcoin cycle analysis provided a framework to understand current crypto market conditions.

While the future direction remained uncertain, past cycles and macro indicators could point toward a possible altcoin recovery.

Investors WOULD likely continue tracking Bitcoin and economic signals to determine when the next cycle phase begins.