Altcoins Market Bearish, Average Prices to Fall 50% by March 2024

Bittime - The latest report from 10x Research shows that the altcoin market is in a serious bearish phase. From an analysis of 115 crypto assets, the average price of altcoins has fallen by 50% from its peak in March 2024.  

Declining Altcoin Performance

10x Research revealed that the majority of altcoins experienced significant declines since peaking in March 2024. Of the 115 altcoins analyzed, 73% of them peaked in March and have since experienced sharp price declines. The decline highlights the challenges facing the altcoin market, including liquidity issues and pressure from investors to return capital.

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Factors Causing Bearish Altcoins

The report identified several key factors that led to the decline in altcoin prices.

1. Ineffective Risk Management: One of the key factors for surviving a bear market is effective risk management. Without the right strategy, investors can experience significant losses.
2. Token Unlocks: The rapid and massive release of tokens over the past few weeks has put enormous pressure on the altcoin market. In May, 10x Research issued a warning about the negative impact of token unlocks, estimated at nearly $2 billion in a ten-week period.
3. Poor Market Liquidity: Insufficient liquidity is also a major cause of altcoin price decline. Without sufficient liquidity, it is difficult for altcoin prices to recover and stabilize.

Bitcoin and Ethereum

While altcoins experienced a significant decline, Bitcoin and Ethereum showed better performance. Bitcoin is down by 11% and Ethereum is down 13% from its peak. According to 10x Research, this is likely due to smarter traders switching from altcoins to Bitcoin and Ethereum, a pattern also seen in previous market cycles.

In the report, 10x Research also revealed predictions for Bitcoin prices. They have accurately predicted Bitcoin prices on several previous occasions, including a 2023 end-of-year target of $45,000 and a $63,000 target ahead of the Bitcoin halving in 2024. While there is potential for Bitcoin prices to reach $125,000, shrinking market liquidity makes achieving these targets challenging.

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Altcoin Predictions and Future Strategy

The 10x Research report also provides a look at the future of the altcoin market and strategies investors can take. They warned that without improving market liquidity, losses experienced by altcoins could become more severe. 

They also emphasized the importance of effective risk management and advised investors to be wary of token unlocks that could put additional pressure on altcoin prices.

One additional factor influencing the altcoin market is pressure from venture capital. In the first quarter of 2022, venture capital invested $13 billion in the crypto market, but is now under pressure to return capital to investors as interest shifts to AI themes. This pressure adds weight to the already weak altcoin market. 

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How to Buy Crypto with Bittime

You can buy and sell crypto assets in an easy and safe way through Bittime. Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. 

Monitor price chart movements of Bitcoin (BTC) , Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.

Also Read:

Altcoin Season is Coming! These are 4 Altcoins that are worth looking at

Bearish Trend Alert! These 5 Altcoins Are Worth Avoiding Post Bitcoin Halving

5 Altcoins Have a Chance to Rise 1000% when Bitcoin Falls? This is the Altcoin List

DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.