Altcoins are currently facing unprecedented selling pressure as the market struggles to recover.
After several months of price decline, the altcoin market has failed to show any sign that it would soon recover.
The total market capitalization for altcoins, excluding Ethereum, has stayed below $1 trillion throughout February, while the overall sentiment has fallen to levels never seen for years in the crypto market.
Many investors are hoping that a bottom may be near after five consecutive months of losses, but the data suggests caution. According to the data that shows the cumulative buy/sell difference for altcoins, it has reached extreme levels.
Over the past 13 months, the net selling pressure has reached about $209 billion. In January 2025, this metric was near zero, showing the balance between buyers and sellers.
Since then, the trend has been almost entirely one-sided, signaling that many retail investors have exited the market, smart money has rotated somewhere else, and more importantly, institutional interest in altcoins has significantly reduced.
Also Read: Altcoins Flash Bullish Divergence on Weekly Charts, Signaling Potential Trend Reversal
Altcoin Selling Pressure Signals Future Risks
According to CryptoQuant’s report, altcoins are currently experiencing their most extreme sell-off level in the last five years. The buy/sell quote volume ratio shows that selling is accelerating, with few buyers stepping in.
This is not a temporary dip but a prolonged trend of net selling on major centralized exchange spot markets. Analysts warn that -$209 billion in cumulative delta does not indicate a market bottom, but instead, it reflects the near absence of demand.
Also Read: Cryptoquant
Bitcoin has also corrected significantly, dropping from an all-time high above $125,000 in October 2025 to around $68,800.
This decline has further drained liquidity from the other small tokens, as retail investors who might have supported smaller tokens are largely out of the market. Smart money, meanwhile, has rotated away from altcoins, leaving these assets under extreme pressure.
What to Look Out For in the Coming Months
For now, it is very clear that the market is fragile, and any rally that goes on may be short-lived. Many retail investors have exited, and there is little evidence that any major institution is stepping in to buy the dip.
Small-scale traders are advised to carefully observe the cumulative buy/sell trends and on-chain activity before making any kind of decisions.
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