Darkfost says 40% of altcoins are near all-time lows, blaming oversupply as 60,000 new tokens launch daily. Van de Poppe sees a contrarian buy signal, citing weak Bitcoin shorts.
Alpha Score of 34 reflects weak overall profile with poor momentum, poor value, weak quality, strong sentiment.
Nearly 40 percent of altcoins are trading within a quarter of their all-time lows, according to data shared by crypto analyst Darkfost.
"That's today's stat, and it reflects the harsh reality facing all these projects that chose to launch a token," Darkfost said, describing a chart built to track tokens below 25 percent of their peak price.
The figure shifts with Bitcoin. It hit 45 percent when Bitcoin dropped under $60,000 in late June, Darkfost added, showing how closely altcoin weakness tracks the largest cryptocurrency's drawdowns.
Darkfost tied the underperformance to oversupply. CoinMarketCap now lists 53.5 million cryptocurrencies, with 60,000 new tokens added daily, according to his analysis. "Without strong incoming liquidity, it's easy to see why the majority of these cryptos are doomed to fail," he said. His advice: investors need to stay highly selective.
Trader Michael van de Poppe reads the same weak market differently. He said altcoins held up relatively well, calling it "the exact time to add more into my altcoin portfolio."
His evidence is positioning. Shorts dominate Bitcoin's current positioning, he said, citing a heavily negative Coinbase premium and negative funding rates. That setup means any recovery could move fast as short sellers are forced to buy back in, he argued.
Van de Poppe compared current price action to the tail end of the 2022 bear market, when drawdowns became smaller and slower before the bottom formed. Onchain activity is already picking up, he said, pointing to Near reaching its highest activity since 2021 and rising usage on Solana. He is watching Sui for a potential breakout. A confirmed uptrend needs Bitcoin to clear $61,000 and post a higher high at $67,000, he said.
The divergence between Darkfost and van de Poppe captures the tension in crypto markets right now. Supply is flooding in. Liquidity is thin. Some traders see the crowd's pessimism as a contrarian signal.
Bitcoin changed hands near $58,400 at the time of writing, down 2 percent on the session. The level to watch is $61,000 – the trigger van de Poppe called for a broader altcoin recovery.
Prepared with AlphaScala research tooling and grounded in primary market data: live prices, fundamentals, SEC filings, hedge-fund holdings, and insider activity. Each story is checked against AlphaScala publishing rules before release. Educational coverage, not personalized advice.