As Bitcoin (BTC) seesaws in the low $60,000 region, altcoin performance continues to weaken. According to data collected on Wednesday, almost 40 percent of all altcoin tokens are currently close to their all-time lows (ATL).
Altcoins continue to bleed amid weak demand
According to the following visualization – which tracks the proportion of total altcoins trading close to their ATLs – 4 out of every 10 altcoins are now at historic lows.
To explain, the chart superimposes BTC price over the number of altcoins close to their ATLs. The proportion was close to just 5 percent in January 2025. However, since then it has been on a prolonged downtrend, and is now starting to enter unchartered territory.
In fact, when BTC dropped to almost $59,000 in June, the metric surged to roughly 45 percent. According to data from CoinMarketCap, there are around 53.5 million cryptocurrencies currently in the market.
On average, approximately 60,000 cryptocurrencies are created every single day, resulting in enormous supply of cryptocurrencies with which demand is clearly not able to keep up.
Without strong incoming liquidity, it’s easy to see why the majority of these cryptos are doomed to fail. It’s now essential to carefully select the projects you choose to be exposed to, and stay highly selective.
Meanwhile, the ETH/BTC trading pair – often considered a barometer to gauge altcoins’ performance in relation to BTC – has recorded gains worth roughly 8.75 percent since June 27. However, the overall trend still remains negative, casting serious clouds over the longevity of the fresh upward move.
To explain, the ETH/BTC trading pair measures Ethereum’s strength relative to Bitcoin and is widely watched as an indicator of risk appetite in the crypto market.
When ETH/BTC trends higher, it signals capital rotating from Bitcoin into Ethereum and other altcoins, increasing the likelihood of a broader altcoin rally, or a so-called “altseason.”
ETH eyeing the $4,000 target, analyst says
Crypto analyst Yimin shared on X that ETH hasn’t had a proper bull market since at least 2021. Consequently, there has been a remarkable absence of a full-blown altseason in the crypto market. However, over the next year, things can dramatically change.
Yimin forecasts ETH to trade around $4,000 – or record a gain of 123 percent – a year from now. Although the short-term outlook remains neutral at best, the risk-reward ratio in the long-term looks too good to ignore.
