Bitcoin News Today: Crypto Market Loses $60 Billion Altcoins Face Sell Pressure

The crypto market experienced a significant downturn, losing $60 billion in value over the past day. The total market capitalization dropped from a peak of $3.92 trillion to $3.86 trillion, according to CoinMarketCap. This decline is indicative of a broader trend where altcoins are seeing a steady outflow of capital, which could lead to a substantial drop in their values.

Key indicators suggest that altcoins are facing increasing sell pressure as Bitcoin decouples from the broader market and dominates liquidity. Only 17 altcoins have outperformed Bitcoin over the past 60 days, according to the Altseason Index. This low count suggests that a true altseason, where altcoins attract the bulk of market liquidity, has yet to begin. Instead, liquidity remains concentrated in a limited number of assets, which could trigger a rotation back into Bitcoin.

The Alphractal Correlation Heatmap, which tracks how closely altcoins move relative to Bitcoin, shows a sharp shift towards zero, indicating a growing decoupling between Bitcoin and altcoin pairs. Historically, such a divergence has preceded broad market corrections for altcoins. This trend implies that only a handful of cryptocurrencies may remain in the green, with marginal gains, while most altcoins could face heightened volatility.

Moreover, the Alpha Quant Signal reinforces the bearish outlook for altcoins, flashing a sell signal on the chart. Historical data shows that each time this signal appears, it has preceded a market decline. If this pattern holds, the likelihood of a sustained altcoin rally appears slim. Even the 17 outperforming tokens could struggle, with the broader altcoin market likely absorbing the biggest hit.

While multiple altcoin indicators point to an incoming sell-off, the ETH/BTC chart currently suggests a potential rally remains in play. Typically, when this chart trends upward, it signals ongoing capital rotation from Bitcoin into Ethereum and other altcoins. If the ETH/BTC pair continues to rise, altcoins may still have room to rally. However, any shift lower in this chart would likely confirm the final leg of a broader altcoin sell-off.