The crypto market has been turbulent in October, with altcoin market capitalization dropping one other 15%, and the month isn’t even over but. Might this downturn worsen earlier than October ends?
Latest knowledge and analyses reveal clues traders can use to evaluate dangers and alternatives throughout this delicate interval.
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Over 70,000 Altcoin Influx Transactions Might Deepen the Decline
The decline is not only a results of short-term volatility. It additionally displays rising promote stress and weakening demand from traders.
One of many clearest alerts is the sharp enhance within the variety of altcoins despatched to exchanges, which reached its highest stage this 12 months.
Information from CryptoQuant exhibits that the 7-day common of altcoin influx transactions has surpassed 70,000. Earlier in 2025, comparable spikes in influx exercise coincided with main worth drops in Bitcoin and altcoins.
“Transactions sending alts to exchanges simply hit a brand new YTD excessive, signaling rising promote stress — or merchants gearing up for the subsequent large rotation,” Coin Bureau noted.
A rising quantity of altcoins shifting to exchanges may point out redistribution somewhat than instant worth declines. Nevertheless, stablecoin knowledge helps full the image of market sentiment.
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Weakening Stablecoin Inflows Sign Diminished Shopping for Energy
CryptoQuant’s Stablecoin CEX Circulation knowledge exhibits that whereas netflow stays constructive, it has dropped sharply since mid-September and is now approaching zero in October.
Fewer stablecoins shifting to exchanges counsel a decline in potential shopping for energy. Mixed with the surge in altcoin supply on exchanges, this imbalance might amplify draw back stress.
In late 2024, the same drop in stablecoin netflow preceded a broad market correction.
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The USDT.D index, which tracks Tether’s dominance in complete market capitalization, helps this argument. It has risen above 5%, indicating that stablecoins aren’t being deployed to extend altcoin costs.
Based on Altcoin Vector, the recent liquidation events have elevated USDT dominance — a sample that traditionally coincides with sharp altcoin declines.
“The tight dance between Alts and liquidity has misstepped. The latest deleverage occasion pushed USDT dominance greater, and traditionally, each such transfer has coincided with sharp declines in Alts,” Altcoin Vector commented.
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Indicators of a Potential Backside Amid Broader Weak spot
These indicators counsel that altcoins could battle to get well shortly from the huge liquidation occasion that just lately rocked the market.
Nevertheless, technical analyst Merlijn believes altcoins could be approaching a cycle bottom. His view is predicated on the MACD cross sign, which has appeared solely thrice previously eight years — every marking the start of an altcoin supercycle.
Historical past exhibits that such moments have usually led to robust rallies.
Even so, optimism should be balanced with warning. Optimistic technical alerts can emerge within the darkest phases of the market, however the present bearish indicators can’t be ignored.
Buyers could have to weigh each side fastidiously as October unfolds — a month usually remembered for its volatility and turning factors.