Altcoin Cycle Enters Depression Phase as Bitcoin Declines 2025

Crypto analyst Michaël van de Poppe has identified that the altcoin cycle has entered a depression phase, as of July 2025. This phase is characterized by low confidence, declining prices, and widespread pessimism among investors. Van de Poppe attributed this downturn to the performance of Bitcoin and broader macroeconomic factors, which have significantly impacted investor sentiment across the crypto market.

Van de Poppe shared his insights on X, using the well-known Wall St. Cheat Sheet chart to illustrate the current market sentiment. The chart, which tracks investor emotions during market shifts, placed the current market in the depression stage. This stage is marked by comments such as “This is a sucker’s rally” and “How can we pay all this debt?”, indicating a high level of negativity and uncertainty.

According to van de Poppe, the decline in Bitcoin prices has had a ripple effect on the rest of the crypto market, particularly altcoins. Macroeconomic challenges such as inflation and changing interest rates have placed downward pressure on Bitcoin, which in turn has affected altcoins. These factors have contributed to the overall decline in the altcoin cycle, leading to the current depression phase.

Historically, the depression phase has often been followed by a period of recovery and growth. Van de Poppe suggested that the current phase, although challenging, could be a precursor to a potential recovery for altcoins. He highlighted that past trends have shown that the end of the depression stage often leads to hope and optimism as markets begin to rise again. This historical pattern could repeat itself in the coming months, providing a potential opportunity for altcoin growth.

Van de Poppe identified Bitcoin as the main driver of the altcoin cycle and general crypto market movements. He stated that Bitcoin’s response to macroeconomic signals has pulled altcoins into the depression phase. Global concerns such as inflation and central bank decisions have made Bitcoin more vulnerable to market forces, leading to its weakened performance and the subsequent decline in altcoins.

The community's reaction to van de Poppe's post on X was varied, with some investors seeing the depression phase as an opportunity for long-term positions. They described it as a period of generational entries for investors willing to wait. Others, however, argued that the crypto market might already be in a stage of early recovery, which could appear like depression and confuse investors.

Van de Poppe’s analysis provided a framework to understand the current crypto market conditions. While the future direction remains uncertain, past cycles and macro indicators could point toward a possible altcoin recovery. Investors are likely to continue tracking Bitcoin and economic signals to determine when the next cycle phase begins, hoping for a potential rebound in the altcoin market.