CryptoQuant analyst says the altcoin market cap has shrunk by about $20 billion

ChainCatcher reports that CryptoQuant analyst Darkfost stated that the altcoin market capitalization has shrunk by approximately $20 billion, with about 70% of altcoins on one exchange having fallen below the 200-day moving average. From mid-August to the end of September, the altcoin market capitalization (excluding Bitcoin and stablecoins) increased by $32 billion, but subsequent corrections erased most of these gains.

Darkfost noted that in mid-August, 82% of altcoins on the exchange were trading below the 200-day moving average, while at the beginning of October, this proportion dropped to 10%, with nearly 90% trading above the moving average. Afterwards, the deteriorating macro and political environment, interest rate hikes by the US, EU, and UK central banks, and increased uncertainty due to the results of mid-term elections led to a sharp drop in stock markets, especially technology stocks, with NASDAQ falling 14% from its recent high.

As a result, altcoin market capitalization shrank by around $20 billion, wiping out nearly two-thirds of the gains from August to September. Currently, about 70% of altcoins on the exchange have fallen below the 200-day moving average, and this proportion is once again approaching 80%. Darkfost commented that such extremes in history sometimes signal trend reversals.