Key Takeaways
Are altcoins still under pressure from Bitcoin?
With more alts down 60% YoY than those with gains, more capital might still be heavily favoring Bitcoin.
Could November turn things around?
Yes. This is the same low sentiment zone that meant local bottoms 90% of the time, meaning rotation could spark next.
Altcoins are under pressure, but that could be about to change.
Sentiment is sinking and key projects are gaining in momentum! Will November just surprise us all?
Altcoins are still getting crushed by Bitcoin
Source: Alphractal
Over the last 60 days, altcoins have been hammered. In fact, the Altcoin Season Index is stuck deep inside “Bitcoin Season” – A sign that capital continues to favor BTC over everything else.
Source: Arkham Intelligence
Arkham data lent even more weight here – More altcoins today are down 60% or more over the last year than altcoins that have posted any gains at all. But usually, these exact moments (when altcoins look completely ruined) tend to be the turning point.
This pattern has been seen before, where liquidity eventually rotates. And, November has been one of those months where BTC dominance starts to loosen.
Altcoins may just get their heads above water again.
Nowhere to go but up!
Source: TradingView
Bitcoin’s dominance was around 60.6% at press time. On the face of it, this means that altcoins are still being heavily ignored. However, here’s where it gets interesting.
Source: Alphractal
In fact, the market is currently sitting in its lowest “orange/red” zone since April, the exact region that has marked local bottoms more than 90% of the time.
Altcoins may look weak now, but this kind of extreme sentiment is a turning point. One where money starts flowing back in, not out.
The rotation no one’s talking about…
And, here’s where all of this ties back in.
Source: Santiment
While altcoins remain crushed and sentiment is still washed out, the only part of the market showing consistent “smart money level” improvement right now is privacy-layer development. Starknet [STRK] is leading the pack in 30-day dev activity, followed by zkSync [ZK] and Worldcoin [WLD].
Nym [NYM], Shapeshift [FOX], Oasis Protocol [ROSE] and ZCash [ZEC] are also building hard, despite deep price drawdowns. In the past, money moves first to sectors that show early growth.
And, this group might be seeing the first signs of life in an otherwise tired altcoin market.