Altcoins just suffered their worst sell-off in years, with over $460 billion erased in days. Will liquidity rotate back, or is the dream of another altseason fading for good?

Altcoins under pressure

On Feb. 3, global financial markets suffered a sharp flash crash after Donald Trump imposed tariffs on China, Canada, and Mexico, triggering a sell-off across global markets. Stocks, commodities, and cryptocurrencies reacted immediately, with altcoins taking the biggest hit.

At the end of January, the total altcoin market cap stood at $1.46 trillion, but by Feb. 3, it had plunged to $1 trillion,marking a 31.5% decline and wiping out $460 billion in market value.

Since then, the market has shown some signs of recovery, climbing to $1.22 trillion as of this writing on Feb. 5. However, it remains nearly 16% below its January levels and 28% short of its all-time high of $1.71 trillion from November 2021.

The overall sentiment in the altcoin market remains weak. One key indicator for measuring whether altcoins are outperforming Bitcoin is the CMC Altcoin Season Index, which tracks the performance of the top 100 altcoins relative to Bitcoin over the past 90 days.

As of Feb. 5, the index sits at 36, a sharp drop from 87 in December 2024, when altcoins surged following Trump’s election victory.

A reading above 50 suggests a mild altcoin rally, while above 75 signals a full-fledged altcoin season. At its current level, the index indicates that Bitcoin remains the dominant force in the market, with altcoins struggling to gain traction.

Price performance among major altcoins also reflects this sentiment. Ethereum (ETH) has declined over 18% year to date, currently trading at around $2,800. Solana (SOL) has seen modest growth, rising 5% since the start of the year to reach $205.

Meanwhile, Rip

Go to Source to See Full Article
Author: Ankish Jain