In a market update on October 1, 2026, crypto analyst Doctor Profit said he has reduced altcoin exposure because the market has become too crowded and overleveraged. The trader closed an ONDO position with a 73% profit, exited HBAR with a smaller gain, and sold XRP while waiting for a better entry point.
His decision is not based on a fundamental problem with any of those projects. Instead, he pointed to a broader market imbalance: altcoin spot volume is now roughly four times larger than Bitcoin spot volume. In his view, that kind of divergence often appears when traders move aggressively down the risk curve and can make the market vulnerable to sharp corrections.
Doctor Profit explained that heavy leverage alongside elevated volume increases liquidation risk, especially in altcoins with thinner liquidity. He said he does not want to buy altcoins while activity remains this hot. His tweet stated: “Altcoin spot volume is now 4× bigger than the volume on Bitcoin, and the market has become heavily overleveraged. This is exactly why I took profits. ONDO sold with 73% profit, and I’m out of HBAR with a smaller profit and XRP, waiting for…”
The cautious positioning extends to Bitcoin. Doctor Profit said he is short BTC from $86,200, with additional short orders between $86,500 and $89,500. His next downside target is around $79,000, near the 50-week moving average. He added that longer-term positions in ETH, CRCL and COIN remain untouched, framing the move as a reduction of exposure to the most overheated part of the market rather than a broad bearish reversal.
Other market signals reinforce the warning. Analyst Darkfost noted that Total2, which tracks altcoin market capitalization including Ethereum, absorbed more than $371 billion in inflows since June 2026, a 45% increase in a few months. On Binance, 87% of listed altcoins are now trading above their 200-day moving average, compared with August when 80% were still below that level. Weekly altcoin deposit transactions have climbed above 22,700 on Binance and 8,300 on Coinbase, with roughly 32,000 more across other platforms. Darkfost also pointed to a developing bearish divergence on Total2’s RSI, suggesting momentum may be cooling.
High volume is not automatically bearish, and strong bull markets can remain overextended longer than expected. HBAR and ONDO continue to benefit from tokenization and institutional infrastructure narratives, while XRP is tied to Ripple’s expansion into payments, custody and tokenized finance. The risk for traders following Doctor Profit is that the expected correction may arrive later or be shallower than anticipated, leaving those waiting for lower entries behind.
