The breadth of altcoins on Binance has sharply declined, with a vast majority now trading below a key long-term trend indicator. CryptoQuant contributor Darkfost describes this exhaustion signal as both a liquidity and a price issue.
In a post on X, Darkfost shared a chart tracking the percentage of Binance-listed altcoins trading below their 50-week moving average, alongside Bitcoin’s price. He claims a “LIQUIDITY CRUNCH” has pushed 83% of altcoins into a bear trend, leaving most investors holding non-Bitcoin, non-stablecoin assets “in significant difficulty.”
The chart shows the percentage of altcoins below this threshold has returned to historically stressed levels. The current 83% figure indicates widespread weakness, not just isolated to a few tokens. Darkfost also highlighted an even more extreme reading earlier this month, noting that on February 7, over 92% of Binance altcoins traded below this support level—a post-2023 cycle high for downside participation.
This contrasts sharply with conditions during recent bullish phases. In March 2024, only 6% of altcoins were below the 50-week line, and in December 2024, it was 7%. Outside those periods, at least half have remained below the threshold, a dynamic Darkfost says differs meaningfully from the previous market cycle.
He links the altcoin downturn directly to Bitcoin’s trend and the macroeconomic backdrop, suggesting the market’s risk appetite has tightened while altcoin supply has grown. “The market continues to be driven by BTC’s movements,” he wrote, noting Bitcoin has been in a downtrend since October 2025 after reaching an all-time high of $126,000. Current price action remains uncertain, with Bitcoin hovering around 46% of its peak.
He cites rising geopolitical tensions and a hawkish Federal Reserve as creating a challenging environment for volatile assets like altcoins. The chart places Bitcoin in the mid-$60,000 range, illustrating his point that when Bitcoin’s direction is unclear and macro conditions are hostile, the breadth of higher-risk tokens can deteriorate rapidly and remain weak.
Darkfost emphasized the 50-week moving average as a critical long-term filter used to distinguish corrective phases from structurally healthy ones. When most tokens are below it, rallies tend to be narrower, selection pressure increases, and sustained “alt season” narratives become difficult without a significant shift in liquidity.
He attributes the current situation to “the increase in altcoin supply across the broader crypto market combined with still constrained liquidity conditions,” a mix that can dilute the impact of new market inflows. In this environment, outperformance depends less on broad market exposure and more on understanding shifts in market structure.
At the time of writing, the total crypto market capitalization excluding Bitcoin was $943.46 billion.
Frequently Asked Questions
Of course Here is a list of FAQs about the headline Most Altcoins Face Downturn 83 of Cryptocurrencies Enter Bear Market designed to be helpful for both beginners and more experienced investors
Beginner Definition Questions
1 What does 83 of cryptocurrencies enter a bear market actually mean
It means that 83 out of every 100 major cryptocurrencies have fallen in price by 20 or more from their recent peaks A bear market is a prolonged period of declining prices and negative sentiment
2 What is an altcoin
Altcoin is short for alternative coin It refers to any cryptocurrency that is not Bitcoin Examples include Solana Cardano and Dogecoin
3 Why is this happening now
Bear markets are a normal though painful part of financial cycles They can be triggered by a combination of factors like rising interest rates negative economic news regulatory fears or a loss of confidence after a period of rapid growth
4 Is my cryptocurrency investment worthless now
Not necessarily Price declines are common in cryptos volatile history While some projects may fail many established ones have survived previous bear markets The key is whether the project has realworld use and a strong team not just its current price
5 Should I sell all my altcoins immediately
Panic selling at a loss is rarely a good strategy It locks in your losses A better approach is to review why you invested in each asset If your longterm belief in the project is gone selling might make sense If not holding or adjusting your strategy may be wiser
Intermediate Impact Questions
6 How is this different from Bitcoins price dropping
While Bitcoin often sets the trend altcoins typically have higher volatility In a downturn they often fall much harder and faster than Bitcoin The 83 statistic highlights that the pain is widespread across the smaller riskier assets
7 What does down 80 from its alltime high mean for a coin
If a coin once traded for 10 and now trades for 2 it is down 80 from its alltime high To get back to 10