Two major fluctuations in the cryptocurrency market recently have sparked some important structural changes in the market. According to data from on-chain data analysis platform CryptoQuant, the classic “shock” structure in crypto market cycles makes itself felt in this cycle as well.
Repeated Shocks in Market Cycles
In the analysis published by CryptoQuant, it was stated that market cycles generally go through three basic shock phases. Accordingly, while the first shock occurs at the beginning of the cycle, the second wave creates a devastating effect in the middle of the market. The last and hardest shock is usually the bottom.
Evaluating the issue, CryptoQuant analyst Crypto Dan stated that the current cycle follows a similar path as previous cycles. The analyst emphasized that after the two shocks, downward pressure can still be maintained and that the possibility of a last wave to complete the process is still on the table.
The general pattern in crypto market cycles; There is a shock at the beginning, then a shock in the middle, and usually the hardest one occurs at the bottom. We have witnessed two major shocks before, and a similar flow is observed now.
Mini dictionary: Spot and derivative markets describe markets in the crypto ecosystem where fundamental trading (spot) and futures or option positions (derivative) are made, respectively. Price fluctuations in derivatives create a more sensitive environment in terms of risk and liquidity.
Transition Signals to Altcoins
While the fluctuating structure of the market continues, famous crypto market strategist Michaël van de Poppe stated that a new movement has begun in altcoins. Van de Poppe stated that cryptocurrencies with high volatility potential, especially HYPE, ZEC and NEAR, stand out as the first notable names of the current cycle.
At this stage of the market cycle, coins such as HYPE, ZEC and NEAR stand out first. Generally, after leading movements, the amount of capital in the rest of the ecosystem increases; In particular, perpetual DEXs, privacy-oriented coins and artificial intelligence protocols may be the next areas of interest.
It is thought that the further strengthening of the altcoin season depends on macro developments in global markets. In particular, the decline in bond yields and the relief in energy prices may increase investors’ risk appetite. Analysts remind that projects connected to the Ethereum ecosystem generally perform strongly in such transitions.
Liquidity Rotation and Ecosystem Impact
It was emphasized in the reports that the capital flow to altcoins occurred gradually following market shocks. Industry observers agree that the strength in leading tokens spread to the main ecosystems and popular sub-coin groups after a while.
| Crypto Asset | Current Positive Signal | Market Segment |
|---|---|---|
| HYPE | strong rise | New generation altcoin |
| ZEC | Liquidity flow accelerated | Privacy focused coin |
| NEAR | Leading list movement | Layer-1 protocol |
It is often observed that after cyclical shocks occur in the crypto market, liquidity shifts first from strong-moving coins, then to connected ecosystems, and finally to the broader altcoin segment. Experts emphasize that investors continue to approach cautiously in this process, but the environment is also open to new opportunities.
