Altcoins Struggle to Recover Following Recent Downturn
Altcoins are still grappling with the aftermath of the significant market downturn that occurred a week ago. Many of the major cryptocurrency assets, including Bitcoin, are either hovering near their recent lows or finding it challenging to gain momentum.
For example, Ethereum, the top altcoin by market cap, briefly surpassed $4,200 earlier this week but has since retraced to its post-October 10th levels. On-chain data indicates that investors are growing increasingly skeptical about the long-term potential of altcoins.
Could Altcoins Face Further Correction?
In a recent post on X, CryptoQuant’s Head of Research, Julio Moreno, highlighted a concerning trend where altcoins are flowing in large volumes to centralized exchanges. This shift suggests a shift in investor sentiment from positive to cautious after a promising start to October.
The Exchange Inflow Transaction Count, which measures the deposit of altcoins into centralized exchanges, is a key indicator of investor sentiment. A notable increase in this metric is seen as bearish, indicating potential selling pressure on the cryptocurrency.
Moreno’s post on X revealed that the number of transactions moving altcoins to trading platforms has hit a new high in 2025, with Binance being a major player in this trend. This continuous flow of assets to exchanges could prolong the current market correction for altcoins, but it could also signal a potential market bottom and reversal.
Despite the ongoing correction, the altcoin market cap has fallen to $1.45 trillion, with a 1% drop in the last 24 hours and a significant 13% decline over the past week. This downward trend is evident in the latest market data.