The altcoin market capitalization fell below $900 billion twice within a 24-hour window on Thursday, according to Coingecko data. The sell-off was driven by a market-wide rout that first pushed the aggregate altcoin market to $872 billion shortly after noon on Wednesday, with a second breach occurring at 9 a.m. EST Thursday. Ethereum's 21% decline since June 1 to a low of $1,531 contributed significantly to the downturn, as ETH represents one-fifth of the total altcoin market cap. The aggressive sell-off has raised technical concerns, with the TOTAL3ES index's monthly relative strength index tying the historic lows seen during the FTX meltdown.
Altcoin Market Breaches $900 Billion Threshold Twice in 24 Hours
Coingecko data showed the altcoin market capitalization fell below the $900 billion floor twice in a 24-hour period. The first breach occurred shortly after noon on Wednesday, when the market-wide rout chopped the total to $872 billion. The aggregate altcoin market cap rebounded past $950 billion by midnight, holding steady until a second sell-off at 9 a.m. EST forced a retest of the $872 billion low. The total has since stabilized around $900 billion.
Ethereum Falls 21% Since June 1 to $1,531 Low
Ethereum led the current leg of the altcoin decline, plunging to a new year-to-date low of $1,531. Market data show that ETH, whose market capitalization accounts for one-fifth of the aggregate altcoin market cap, declined by nearly 3% during the period. Since June 1, when it traded just above $2,000, ETH has declined 21%, helping drag the total altcoin market cap down from $1.1 trillion to $900 billion.
Analysts Warn of Historic Bearish Confirmation Risk
The crypto total market capitalization excluding bitcoin, ether, and stablecoins index, known as TOTAL3ES, has dropped to its lowest one-month relative strength index (RSI) reading ever, tying the lows seen during the historic FTX meltdown. Analysts warn that any further drop would push the monthly RSI to a lower low with bearish confirmation, driving it toward oversold levels below 30 for the first time in history.
XRP, BNB, and High-Cap Altcoins Record Losses
BNB, the No. 2 altcoin by market capitalization, dropped a modest 1.2% in 24 hours while XRP, which logged a fresh year-to-date low of $1.01, fell 2.5%. Several high-cap altcoins logged losses exceeding 2%. XLM and XMR registered declines of 4.4% and 4.7%, respectively. HYPE was one of the few notable outliers, jumping 3.7% during the period, while LAB, the only digital asset with double-digit gains over the last seven days, was virtually unchanged, trading at $18.21.
FAQ
What caused the altcoin market to fall below $900 billion twice on Thursday?
A market-wide sell-off drove the altcoin market capitalization below $900 billion twice within 24 hours. The first breach occurred shortly after noon on Wednesday at $872 billion, with a second breach at 9 a.m. EST Thursday retesting the same low.
How much has Ethereum declined since June 1?
Ethereum has declined 21% since June 1, when it traded just above $2,000, falling to a year-to-date low of $1,531. ETH's market capitalization represents one-fifth of the total altcoin market cap.
What technical indicator are analysts monitoring for the altcoin market?
Analysts are monitoring the TOTAL3ES index's monthly relative strength index (RSI), which has dropped to its lowest reading ever, tying the lows seen during the FTX meltdown. Analysts warn that any further drop would push the monthly RSI to a lower low with bearish confirmation, driving it toward oversold levels below 30 for the first time in history.
