Altcoin Market Continues Downtrend Against Bitcoin

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Altcoin Market Continues Downtrend Against Bitcoin

Crypto analyst Daan Crypto Trades has issued a cautionary update on the state of the altcoin market, highlighting its continued underperformance relative to Bitcoin.

Based on the latest weekly chart of TOTAL3/BTC (altcoin market cap excluding ETH vs. Bitcoin), the broader altcoin sector remains locked in a prolonged downtrend and shows little sign of reversing.

According to Daan, the market is once again approaching a key local support zone—a level that has produced bounces in the past. However, he expressed uncertainty about what it would take to spark a sustained turnaround, suggesting that only extreme macro conditions such as mass money printing, quantitative easing, or large-scale interest rate cuts might trigger a meaningful trend reversal.

“Frankly, I am not sure what would be needed besides mass money printing/QE & large rate cuts to get this trend to turn around for more than just a few weeks of squeezes,” Daan stated.

He also cautioned altcoin investors to be selective and strategic, warning that indiscriminate exposure to low-performing tokens could lead to significant underperformance against Bitcoin. While some altcoins may outperform temporarily, the current environment does not support the kind of widespread altcoin rally seen in previous cycles like 2021.

“If this trend were to change around, you can be more reckless and spray and pray on alts just like in 2021,” Daan added. “But for now, thats not the case.”

The accompanying chart shows a descending wedge pattern in the TOTAL3/BTC ratio, with the market currently testing the lower boundary near historical support. Until a clear breakout occurs or macro conditions shift, the outlook for altcoins relative to Bitcoin remains cautious.