Crypto Market Crash To Get Worse With Major Altcoins Dropping Nearly 40%

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As Bitcoin drops, most altcoins follow suit, leading to widespread losses across the crypto market. Ethereum, which recently soared above $3,300, has dipped below $3,200 with a 4% daily drop. Other major altcoins like Solana, Dogecoin, Cardano, and more have also seen 5-8% declines.

Some altcoins like CORE, PEPE, GALA, and FLOKI have experienced more significant drops, with the total crypto market cap decreasing by over $60 billion to $2.430 trillion. 

Alts Bloodbath To Continue…

Analyst Benjamin Cowen suggests that altcoins could face a significant drop of up to 40% against Bitcoin (ALT/BTC pairs) in the coming months. He cites historical trends and declining social interest amidst uncertainty over Fed rate cuts. He parallels previous cycles, noting that ALT/BTC pairs have capitulated just before rate cuts, potentially indicating a further decline ahead.

Despite short-term countertrends, Cowen maintains his perspective on altcoins, highlighting their ongoing struggles amid plummeting social interest, reminiscent of 2019. During that period, social interest also declined before rate cuts, and ALT/BTC pairs bottomed out when the Federal Reserve adjusted its stance.

Investors Brace for Impact

The crypto market is experiencing a bearish sentiment, with Bitcoin’s price falling to $59,500 and altcoins undergoing deeper corrections.

Analysts foresee a possible further decline for Bitcoin, potentially reaching $52,000 if it breaks below $58,000, which represents a 100-day EMA. Market sentiment remains uncertain, with analysts like Patric H. warning of a challenging emotional journey for Bitcoin and altcoin investors in May.

He suggests a final shake-out period within the next 2-6 weeks before a potential breakout, highlighting the market’s current euphoric sentiment and the impact of ongoing outflows from Bitcoin ETFs.

Is Bitcoin Bottomout? 

Bitcoin’s price has been volatile in the past few days. On Monday morning, the asset headed towards $65,000 but failed to overcome that level. The following 36 hours have dropped to $62,000, a two-month low of $59,100, and a brief pump.

The bears have pushed it down to just over $57,000, the lowest price tag since February 28. This recent drop comes after the upcoming US FOMC meeting, typically leading to market volatility. The anticipation surrounding the Federal Reserve’s interest rate announcement has caused FUD in the market, prompting a surge in the dollar index as investors seek safety.