Altcoins Hit Post-FTX Lows: Market in Depression

[Chawla Solutions]

A basket tracking the top 50 altcoins with futures trading on Binance has now fallen below the levels seen after the FTX collapse — a striking indicator that the altcoin market is entering a full-scale depression phase.

This decline erases nearly two years of relative recovery. Despite Bitcoin maintaining strength near its recent highs, altcoins have failed to follow. The chart shows a massive drawdown zone extending since late 2021, with almost no sustained recovery periods. The lack of momentum reflects shrinking liquidity, low retail interest, and institutional caution, all of which continue to weigh heavily on speculative assets.

While isolated narratives — such as AI coins, TON ecosystem tokens, or restaking protocols — show temporary spikes, the broader market remains structurally weak. The gap between Bitcoin and altcoins has widened to its largest in years, showing that capital is consolidating into BTC and a few majors while risk appetite vanishes elsewhere.

Historically, such depressive phases have often preceded new cycles of accumulation. But for now, sentiment is clear: altcoins are in deep fatigue. Recovery will require a shift in liquidity, fresh narratives, or renewed retail participation — none of which seem imminent.

Conclusion:
The altcoin market isn’t just quiet — it’s broken. Until macro liquidity returns, even quality projects will struggle to regain traction.