Altcoins on Track to Mark Longest Price-Sliding Streak Since 2014

Social media users noted this week that altcoins had already logged 252 days of persistent losses as of September 11, putting them on track to break the record for an uninterrupted slide from 2014, when they kept declining for 266 days in a row.

https://twitter.com/galaxybtc/status/1039616924458598400

The period following the 2013 crash in Bitcoin was known as a “crypto ice age,” with both Bitcoin (BTC) and altcoin prices stagnating or sliding for years. However, altcoins managed to spring back to life after that protracted losing streak.

In 2018, the situation looks very different. There are far more assets, as well as new types of assets. The market exuberance of late 2017 lifted valuations to extraordinary levels, but as skepticism crept in, there is no certainty whether those price levels reflect the value of altcoins, startup tokens, or platform coins.

There are different scenarios for the behavior of altcoins. There could be a rally after the losing streak record gets broken or perhaps another 50% drop in prices. A “capitulation event” is also possible, which would leave many altcoins with no trading activity. The question is what would become of the massive altcoin ecosystem, which has a total of 1,944 active cryptocurrencies.

As is typical of them, Bitcoin maximalists believe altcoins are on their way out, with BTC remaining the only meaningful source of returns:

https://twitter.com/TenaciousBTC/status/1039794255194148865

There is one factor that may stir optimism for the entire pool of altcoins: their price influence is still significant, while the market capitalization of a few larger projects, such as Ethereum (ETH) and NEO (NEO), has fallen more rapidly. This mass has hidden gems, which may be supporting the price levels. EOS is lumped in with altcoins, as are TRON (TRX), Ethereum Classic (ETC), and other projects still performing robustly.

Minor and illiquid altcoins are under the greatest threat of a “capitulation event” and a total loss of interest. One example is Electroneum (ETN), which now trades way below its ICO price and is down from peaks of around $0.20 to $0.005.

Another hopeful marker is the fact that while altcoins slide faster than BTC, most of the assets also appreciate faster, returning to their regular levels. Some analysts believe there would not be a mass capitulation for all altcoins, just low-quality projects potentially weeded out by the bear market.

https://twitter.com/Crypto_Bitlord/status/1039858961845899264

Additionally, more robust altcoins are seeing their presence on exchanges expand with new listings and pairings, which may help adoption and price action in the longer term.

Neither the author nor the publication assumes any responsibility or liability for any investments, profits, or losses made as a result of this information. Cryptocurrency trading and investing are risky propositions, and market participants are advised to always conduct thorough research.