On October 18, Glassnode reported that weekend selling had hit altcoins hard, with the typical altcoin down more than 5% and potentially marking the largest weekend drop since April. The analytics firm said fears from equity markets were spilling into cryptocurrency, prompting traders to reassess positions and increasing caution across the market.
By October 19, analyst Darkfost added further detail on the scale of the reversal. More than $134 billion exited the altcoin sector within 15 days after a rally that ran from late August through early October. During that rally, altcoins attracted more than $814 billion in inflows. Now 48.4% of Binance-listed altcoins are trading below their 200-day moving average, up sharply from under 10% during the rally, when more than 90% were above the threshold.
The retreat has been uneven. Mid- and small-cap assets recorded monthly average market capitalization growth of 41% above their annual average, compared with only 7% for Bitcoin and 3.5% for large-cap assets. Darkfost noted this differs from the 2023 bear-market recovery, when Bitcoin led the advance. However, mid- and small-cap assets are more sensitive to market changes, and their stronger growth can reverse quickly.
Analyst Michael van de Poppe said fear is now shaping trader behavior. Some investors who previously wanted to buy altcoins during a correction are now waiting for even lower prices, and there is growing concern that the market could enter a longer bear phase. Trading patterns are shifting too: Glassnode highlighted that buying on Fridays and selling on Sundays has historically been profitable, emphasizing how equity market sentiment is influencing crypto performance.
