Analyst Warns of Bearish Outlook for Altcoins: Most May Plunge 99% by 2026 Amid Shifting Market Dynamics
Altcoin season, typically marked by broad outperformance of altcoins versus Bitcoin, appears to be ending. Notably, market analysts observe that altcoin gains are becoming more selective, with Ethereum experiencing sharp short-term rallies but Bitcoin maintaining dominance. The latest on-chain analysis issues a stark warning: up to 90% of altcoins could lose 99% of their value by 2026. Investors are urged to consider exiting most altcoin positions by August 2025, as historical metrics (MVRV, NUPL, SOPR) signal potential market tops resembling those seen before major crashes in 2017 and 2021. The phase of widespread gains across all tokens is likely over, with future capital expected to flow into specific narratives such as memecoins, AI tokens, Layer-2 projects, and DeFi sectors on platforms like Solana and Ethereum. The analyst advises traders to avoid ’last-pump’ FOMO and to gradually reallocate funds to lower-risk, yield-generating assets and Real-World Assets (RWAs) while market strength persists. Emphasis is placed on security, recommending cold wallets for storing core holdings and burner wallets for speculative moves. Persistent high interest rates may be delaying the traditional altcoin season and could limit explosive rallies. The core advice is to focus on capital protection, closely monitor evolving market signals, and reduce exposure to high-risk altcoins amid changing market conditions.
Bearish
The combined analyses indicate that the broad altcoin market faces a bearish outlook. Historical and on-chain metrics suggest an impending market top for altcoins, with a high likelihood many will experience significant declines (up to 99%) by 2026. The anticipated end of wide-ranging altcoin rallies, distribution of capital into specific narratives instead of across the board, and cautious investor sentiment fueled by historic precedents, all point toward reduced upside and heightened risk for the majority of altcoins. High interest rates further dampen the potential for explosive rallies. The short-term may see selective sector-driven momentum, but the longer-term view is strongly bearish, especially for weaker altcoin projects. Traders are advised to protect capital, avoid overexposure, and prepare for potential sharp market corrections.