Bitcoin Drop Below $100K May Prolong Altcoin Market Struggles

• Altcoin Season Index at 32/100 signals Bitcoin dominance.

• 72 of the top 100 cryptocurrencies trade 50% or more below all-time highs.

• Total altcoin market cap has declined by $400 billion since late October 2025.

Discover why altcoins are underperforming in 2025 amid Bitcoin’s slump. Explore market cap losses, technical indicators, and recovery signals. Stay informed on crypto trends for smarter investing decisions.

What is causing altcoins underperformance in 2025?

Altcoins underperformance in 2025 stems primarily from Bitcoin’s sharp correction below $100,000, which has triggered widespread selling pressure across the cryptocurrency market. This decline has wiped out $400 billion from the altcoin market capitalization, dropping it from $1.8 trillion in late October to $1.4 trillion currently. Major altcoins such as Ethereum, which fell over 6% to around $3,200, and others like XRP, BNB, SOL, ADA, DOGE, HYPE, and LINK, have seen losses exceeding 9% in the past week alone, amplifying the sector’s vulnerability during periods of heightened market volatility.

How has Bitcoin’s price drop impacted altcoin valuations?

Bitcoin’s 23% drop from its October 2025 highs has disproportionately affected altcoins, which often amplify Bitcoin’s movements due to their higher beta. According to data from CoinMarketCap, the Altcoin Season Index has plunged to 32 out of 100, far below the 75 threshold needed for an altcoin rally. This index measures the performance of the top 100 non-Bitcoin cryptocurrencies against Bitcoin over a 90-day period, and its current level indicates overwhelming Bitcoin dominance.

Galaxy Research reports that 72 of the top 100 cryptocurrencies are now trading at least 50% below their all-time highs, underscoring the speculative nature of many altcoin investments. Ethereum, the second-largest cryptocurrency, has lost over 6% in the last seven days, settling around $3,200, while XRP declined 1.8% and BNB more than 5%. Smaller tokens like Solana (SOL), Cardano (ADA), Dogecoin (DOGE), Hyperliquid (HYPE), and Chainlink (LINK) have fared worse, with drops of 9% or greater.

The total altcoin market cap, excluding Bitcoin, peaked at $1.8 trillion in late October 2025 before a steady erosion accelerated into a sharp fall. This $400 billion loss reflects not just price corrections but also reduced liquidity and investor confidence. Trading volumes for altcoins have contracted, making them more susceptible to large sell-offs. Experts from CryptoQuant note that such synchronized declines often precede prolonged bearish phases, as seen in historical cycles like 2018 and 2022.

Technical devastation

The percentage of altcoins on Binance trading above their 200-day moving average—a key indicator of long-term health—has collapsed to levels typically associated with bear markets. This metric dove sharply through November 2025 as Bitcoin’s correction gained momentum.

Few altcoin projects retain a bullish technical structure at this stage. Historical analysis from CryptoQuant reveals that when this indicator falls to current lows, altcoin prices endure extended periods of weakness before any meaningful recovery materializes. The chart below illustrates the dramatic shift, highlighting a cliff-like drop that aligns with broader market sentiment turning pessimistic.

Source: CryptoQuant

$400 billion vanishes from market cap

The altcoin market capitalization reached a high of $1.8 trillion in late October 2025, only to lose $400 billion in the ensuing weeks. This downturn intensified as Bitcoin breached critical support levels, pulling altcoins into a deeper correction.

At approximately $1.4 trillion today, the sector has fully reversed the upward momentum from earlier in the year. The intraday data from TradingView indicates ongoing pressure, with the market cap slipping to $238 billion from $239.78 billion in the past 24 hours, showing no immediate signs of stabilization.

Source: CoinGecko

Altcoin season canceled

CoinMarketCap’s Altcoin Season Index stands at 32/100 as of late November 2025. To qualify as an “altcoin season,” the index must reach 75/100, a mark that now seems distant amid the current bearish environment.

These figures point to extreme Bitcoin dominance, where altcoins are experiencing severe compression. Galaxy Research’s analysis confirms the extent of the downturn: 72 out of the top 100 cryptocurrencies are trading 50% or more below their all-time highs, a stark reminder of the risks involved in speculative altcoin investments.

This underperformance extends beyond major tokens. Mid-cap and small-cap altcoins have seen even steeper declines, with many projects struggling to maintain trading volumes. The shift in investor behavior toward safer assets like Bitcoin and stablecoins has exacerbated the situation, leaving illiquid altcoins particularly exposed.

What’s next for altcoins?

With collapsing market capitalization, deteriorating technical indicators, and historically low sentiment metrics, altcoins appear poised for further declines. Recovery may hinge on Bitcoin stabilizing and broader market indicators showing improvement, but the path forward remains challenging.

Traders are increasingly rotating capital into Bitcoin and stablecoins, sidelining riskier altcoins. Whether this represents the final stages of capitulation or the onset of a prolonged crypto winter is uncertain, but historical patterns suggest patience will be key for long-term holders.

Frequently Asked Questions

Why are altcoins declining so sharply in 2025?

Altcoins are declining sharply in 2025 due to Bitcoin’s correction below $100,000, which has triggered a $400 billion market cap loss. The Altcoin Season Index at 32/100 reflects Bitcoin’s dominance, while 72 top cryptocurrencies trade over 50% below highs, per Galaxy Research data. This interconnected sell-off highlights altcoins’ sensitivity to market leaders.

How does the Altcoin Season Index work for voice search queries?

The Altcoin Season Index from CoinMarketCap tracks how the top 100 altcoins perform against Bitcoin over 90 days. A score above 75 indicates altcoin season, below 25 means Bitcoin season, and in between signals mixed conditions. Right now, at 32, it shows altcoins are underperforming, making Bitcoin the safer bet for stability.

Key Takeaways

• Altcoin Season Index at 32/100: This low score underscores Bitcoin’s dominance and the absence of an altcoin rally in late 2025.
• Market Cap Erosion: A $400 billion drop from $1.8 trillion to $1.4 trillion highlights severe valuation pressure on altcoins.
• Technical Bear Signals: Only a fraction of altcoins trade above the 200-day moving average, suggesting prolonged recovery timelines.

Conclusion

The ongoing altcoins underperformance in 2025 has reshaped the cryptocurrency landscape, with significant market cap losses and bearish technicals dominating the narrative. As Bitcoin’s influence persists, investors must navigate this phase with caution, focusing on fundamentals amid the volatility. Looking ahead, stabilization in Bitcoin could pave the way for altcoin rebounds, offering opportunities for those prepared to weather the current storm—consider diversifying wisely to position for future growth.