Is a market purge underway?

[Vincom]

With the US presidential election concluded and the Fed announcing lower interest rates, the economic outlook appears promising, especially for the crypto market. While Bitcoin has rallied, most altcoins have underperformed investor expectations.

BTC.D has surged nearly 60%, now accounting for 60% of the total crypto market cap. This is lower than previous halving years but still a cause for concern among altcoin investors. While Bitcoin has recovered and begun to rally, many altcoins remain undervalued and continue to make new lows.

Some analysts suggest that the recent underperformance of altcoins is due to the influx of capital into Bitcoin following the successful launch of spot BTC ETFs. Others argue that altcoins lack a clear and widely accepted value proposition. While Bitcoin has established itself as a digital store of value, the roles of Ethereum, BNB, and SOL remain less defined.

But I believe the real reason is that: the altcoin market has become oversaturated. With countless L1 and L2 blockchains and thousands of DeFi, GameFi, and NFT projects, competition is fierce and scams are rampant. A market correction is necessary to weed out weaker projects and allow promising ones to flourish with focused investment.

Given the current market dynamics, with BTC leading a solo rally, it's reasonable to expect continued altcoin stagnation. This orchestrated pause, likely influenced by market whales, positions the market for a future altseason once BTC stabilizes at a higher price point, potentially around 100K USD. As such, 2024 might be a year of BTC dominance, with significant altcoin movements more likely in the volatile landscape of 2025.

I would like to know your opinion on this issue:

• Are you holding altcoins? Which?
• Do you think a purge is underway in the market?
• Do you intend to sell altcoins to focus on BTC investment?

[MAAManda]

Are you holding altcoins? Which?

Yes, I'm. Some of them are Oasis Network (ROSE), Ethereum (ETH), Cardano (ADA) & Solana (SOL).

Do you think a purge is underway in the market?

I don't think so, the current condition is a normal condition where dynamics occur, it is normal to see people have more confidence in Bitcoin (BTC) and that is how it should be.

Do you intend to sell altcoins to focus on BTC investment?

Not at all, I will continue to hold my altcoin portfolio but will not add any more (at least until I see other dynamics happening) because currently the market is moving towards Bitcoin (BTC).

[TastyChillySauce00]

• Are you holding altcoins? Which?
• Do you think a purge is underway in the market?
• Do you intend to sell altcoins to focus on BTC investment?

1. I hold plenty of ALTs including solana, ethereum, celestia and so on.

2. I don't think so, it's just that alt season hasn't come yet, times like this where btc dominance just keep climbing is pretty normal, happened frequently as well back in previous bullish cycle.

3. I'd sell my alt and reposition to BTC once alt season hits and the market of alts become over valued.

[shinratensei_]

I would not call it's market purge unless BTC.DOM reaching all time high again and break the resistance.

if you can see, BTC.DOM is around the resistance, which is 59% - 61%, it goes down for a while after touching the resistance and this is the reason why altcoin right now is going up granted that there's always possibility the BTC.DOM is going up again but the common understanding about altcoin is that, if BTC price stays and BTC.DOM goes down, it means altcoin is going up.

the lack of performance is completely understandable in this case, because BTC.DOM just keeps climbing overtime emphasizing that the influx of capital centered around BTC only, but altcoin will have its time i'm sure of it .

[gunhell16]

In my own assessment, I don't think we are on the way to a purge. Why did I say? because we are not in the alts season at this time. It doesn't mean that there is a rally in bitcoin now that that is what is happening as you think op, it is not like that.

And just like the others, I also have several holdings of altcoins in my wallet to be honest because I know if the ones I'm holding are actually potential. And knowing that more than 50% held in altcoins can really give me a profit by next year.

[hugeblack]

But I believe the real reason is that: the altcoin market has become oversaturated. With countless L1 and L2 blockchains and thousands of DeFi, GameFi, and NFT projects, competition is fierce and scams are rampant. A market correction is necessary to weed out weaker projects and allow promising ones to flourish with focused investment.

Another reason is that these projects did not provide enough ideas to prove that they are successful, for example, Ethereum has not developed much in recent years and no altcoin has provided a strong blockchain to be a competitor or alternative to Ethereum, etc. The market is saturated with projects, but they are duplicated and do not provide any real competition.

[betswift]

But I believe the real reason is that: the altcoin market has become oversaturated. With countless L1 and L2 blockchains and thousands of DeFi, GameFi, and NFT projects, competition is fierce and scams are rampant. A market correction is necessary to weed out weaker projects and allow promising ones to flourish with focused investment.

Another reason is that these projects did not provide enough ideas to prove that they are successful, for example, Ethereum has not developed much in recent years and no altcoin has provided a strong blockchain to be a competitor or alternative to Ethereum, etc. The market is saturated with projects, but they are duplicated and do not provide any real competition.

Projects are created for money mostly, not to topple something innovation-wise, that's the reason.
And even if there is a good tech-wise alt, it doesn't have the means to become propelled forward due to people looking only into the profit-side of the project.
I do think that's the reason behind it.

[FortuneFollower]

In my own assessment, I don't think we are on the way to a purge. Why did I say? because we are not in the alts season at this time. It doesn't mean that there is a rally in bitcoin now that that is what is happening as you think op, it is not like that.

And just like the others, I also have several holdings of altcoins in my wallet to be honest because I know if the ones I'm holding are actually potential. And knowing that more than 50% held in altcoins can really give me a profit by next year.

We need to look closely at the rally for BTC and only then make conclusions about it.
I do hold alts too, and I don't think to get rid of my bags anytime soon.
In fact, I think we are in for the ride from that moment on.

[john_egbert]

I would not call it's market purge unless BTC.DOM reaching all time high again and break the resistance.

if you can see, BTC.DOM is around the resistance, which is 59% - 61%, it goes down for a while after touching the resistance and this is the reason why altcoin right now is going up granted that there's always possibility the BTC.DOM is going up again but the common understanding about altcoin is that, if BTC price stays and BTC.DOM goes down, it means altcoin is going up.

the lack of performance is completely understandable in this case, because BTC.DOM just keeps climbing overtime emphasizing that the influx of capital centered around BTC only, but altcoin will have its time i'm sure of it .

When the moment strikes, we should all be ready for the DOM of BTC going down.
And alts to rise and go beyond was what prepared for them.
I definitely hope for that and look after the market closely due to the sentiment that is seen overall.

[fikrett]

• Are you holding altcoins? Which?
• Do you think a purge is underway in the market?
• Do you intend to sell altcoins to focus on BTC investment?

1. I hold plenty of ALTs including solana, ethereum, celestia and so on.

2. I don't think so, it's just that alt season hasn't come yet, times like this where btc dominance just keep climbing is pretty normal, happened frequently as well back in previous bullish cycle.

3. I'd sell my alt and reposition to BTC once alt season hits and the market of alts become over valued.

I agree with the third point especially - I do think we didn't reach the targets which could be reached and of course, it's possible to do it now, but I do think that we are already in a good position to see where BTC would go and use it to our advantage. Using the alts, of course.
 

[o48o]

I would not call it's market purge unless BTC.DOM reaching all time high again and break the resistance.

if you can see, BTC.DOM is around the resistance, which is 59% - 61%, it goes down for a while after touching the resistance and this is the reason why altcoin right now is going up granted that there's always possibility the BTC.DOM is going up again but the common understanding about altcoin is that, if BTC price stays and BTC.DOM goes down, it means altcoin is going up.

the lack of performance is completely understandable in this case, because BTC.DOM just keeps climbing overtime emphasizing that the influx of capital centered around BTC only, but altcoin will have its time i'm sure of it .

More it climbs, more altcoins will moon when they finally catch up with a btc's market cap lead, but BTC.D seems like it could be near the decision to either break out or crash down (if you believe in D-shape breakout indicator).


Whole crypto scene is so insanely bullish now, that i don't know what would need to happen that could stop upcoming bullrun. Many underlying reasons for the altcoin season are really bad for everyone in the long run, but at least crypto people get their one (maybe last) big bullrun.

I don't even want to imagine how much of a big crash it will be next time. Great Depression will look like park ride next to it. And meanwhile Elon calls for end of US reserve bank that would definitely contribute to the next crash, as moving away from traditional finances isn't a smart move no matter how you look at it.

[pooya87]

• Do you intend to sell altcoins to focus on BTC investment?

What you are observing here is the most common thing in the altcoin market. The traders don't care about any of the altcoins. In fact the only reason majority of people went into altcoin trading was to increase the amount of bitcoin they owned. That means the moment bitcoin market starts making any kind of move, they immediately dump their altcoins and rush to bitcoin market.

So the answer to this question is yes for majority of people.

But remember that whenever bitcoin starts rallying, specially if those rises last for an extended period of time, it attracts new investors many of whom are newbies who would start buying shitcoins. Then the shitcoin market starts pumping which is the best time to enter it and make quick profits (without becoming bag holders).

[X-ray]

seeing current BTC dominance data, I guess this thesis is not far from truth, the dom just broken through resistance, it'd mean all alt will be dumping, hopefully it won't be that bad since I also hold some alt.
but I wonder if there will be alt season, but one thing for sure we need to see whether money just focused on BTC alone, the situation is really bullish for bitcoin that it leaves altcoin behind.

the overall altcoin market cap also seem to be on the brink of correction this time around.

It'd leave a bad taste seeing alt just dumping when bitcoin keep making new ATH.

[bbc.reporter]

With the US presidential election concluded and the Fed announcing lower interest rates, the economic outlook appears promising, especially for the crypto market. While Bitcoin has rallied, most altcoins have underperformed investor expectations.

BTC.D has surged nearly 60%, now accounting for 60% of the total crypto market cap. This is lower than previous halving years but still a cause for concern among altcoin investors. While Bitcoin has recovered and begun to rally, many altcoins remain undervalued and continue to make new lows.

Some analysts suggest that the recent underperformance of altcoins is due to the influx of capital into Bitcoin following the successful launch of spot BTC ETFs. Others argue that altcoins lack a clear and widely accepted value proposition. While Bitcoin has established itself as a digital store of value, the roles of Ethereum, BNB, and SOL remain less defined.

But I believe the real reason is that: the altcoin market has become oversaturated. With countless L1 and L2 blockchains and thousands of DeFi, GameFi, and NFT projects, competition is fierce and scams are rampant. A market correction is necessary to weed out weaker projects and allow promising ones to flourish with focused investment.

Given the current market dynamics, with BTC leading a solo rally, it's reasonable to expect continued altcoin stagnation. This orchestrated pause, likely influenced by market whales, positions the market for a future altseason once BTC stabilizes at a higher price point, potentially around 100K USD. As such, 2024 might be a year of BTC dominance, with significant altcoin movements more likely in the volatile landscape of 2025.

I would like to know your opinion on this issue:

• Are you holding altcoins? Which?
• Do you think a purge is underway in the market?
• Do you intend to sell altcoins to focus on BTC investment?

What is this market purge you are implying? I might have made a mistaken assumption on your post, however, it appears you are not reading this bitcoin dominance chart correctly hehehehe. If bitcoin dominance has a big dump during a bull market, this is very much bullish for altcoins because the netflow of investments is going to altcoins.

This pump on bitcoin dominance is only the beginning of the bull market and very similar to the previous bull markets the netflow will always go to altcoins. This will never change, I reckon.

[danherbias07]

Don't forget the large number of meme coins that are being created. It's like everyone is a developer now.

I would like to know your opinion on this issue:

• Are you holding altcoins? Which?
• Do you think a purge is underway in the market?
• Do you intend to sell altcoins to focus on BTC investment?

Yes. I do hold altcoins. Ethereum, BNB, CRO, and more.

I think there will be dominance from the old popular altcoins considering they are next to Bitcoin and if not a purge will happen then I bet those coins that don't really have any project backing them up will be dust in the future. Investors still want to diversify and most are not Bitcoin maximalists so they always turn to altcoins if they want something different.

Yes, I intend to sell my altcoins but only those who I think lack the long-term ability. The circulating money on cryptocurrencies is truly scattered in different altcoins and some developers are purposely doing a short-term investment scheme just to get the money and complete their mission. Then, everything will rely on sales of their product.