Why the Altcoin Market Cap Decline May Deepen in October
The crypto market has been turbulent in October, with altcoin market capitalization dropping one other 15%, and the month isn’t even over but. Could this downturn worsen earlier than October ends?
Recent knowledge and analyses reveal clues traders can use to evaluate dangers and alternatives throughout this delicate interval.
Over 70,000 Altcoin Inflow Transactions Could Deepen the Decline
The decline is not only a results of short-term volatility. It additionally displays rising promote strain and weakening demand from traders.
One of the clearest indicators is the sharp improve in the variety of altcoins despatched to exchanges, which reached its highest degree this 12 months.
Data from CryptoQuant reveals that the 7-day common of altcoin influx transactions has surpassed 70,000. Earlier in 2025, related spikes in influx exercise coincided with main value drops in Bitcoin and altcoins.
“Transactions sending alts to exchanges simply hit a brand new YTD high, signaling rising promote strain — or merchants gearing up for the subsequent large rotation,” Coin Bureau noted.
A rising quantity of altcoins shifting to exchanges may point out redistribution slightly than quick value declines. However, stablecoin knowledge helps full the image of market sentiment.
Weakening Stablecoin Inflows Signal Diminished Buying Power
CryptoQuant’s Stablecoin CEX Flow knowledge reveals that whereas netflow stays optimistic, it has dropped sharply since mid-September and is now approaching zero in October.
Fewer stablecoins shifting to exchanges recommend a decline in potential shopping for energy. Combined with the surge in altcoin supply on exchanges, this imbalance might amplify draw back strain.
In late 2024, an analogous drop in stablecoin netflow preceded a broad market correction.
The USDT.D index, which tracks Tether’s dominance in complete market capitalization, helps this argument. It has risen above 5%, indicating that stablecoins aren’t being deployed to extend altcoin costs.
According to Altcoin Vector, the recent liquidation events have elevated USDT dominance — a sample that traditionally coincides with sharp altcoin declines.
“The tight dance between Alts and liquidity has misstepped. The current deleverage occasion pushed USDT dominance increased, and traditionally, each such transfer has coincided with sharp declines in Alts,” Altcoin Vector commented.
Signs of a Potential Bottom Amid Broader Weakness
These indicators recommend that altcoins might wrestle to get well shortly from the huge liquidation occasion that just lately rocked the market.
However, technical analyst Merlijn believes altcoins could be approaching a cycle bottom. His view relies on the MACD cross sign, which has appeared solely thrice in the previous eight years — every marking the start of an altcoin supercycle.
History reveals that such moments have typically led to robust rallies.
Even so, optimism should be balanced with warning. Positive technical indicators can emerge in the darkest phases of the market, however the present bearish indicators can’t be ignored.
Investors might have to weigh either side rigorously as October unfolds — a month typically remembered for its volatility and turning factors.
The submit Why the Altcoin Market Cap Decline May Deepen in October appeared first on BeInCrypto.
