Analysis: Altcoin bear market could last longer

The altcoin bear market could last longer due to obstacles such as low liquidity, Bitcoin’s dominance amid geopolitical instability and grievous market dilution, according to BelnCrypto. CryptoQuant analyst Burak Kesmeci noted that as per the “1-year Cumulative Buy/Sell Quote Volume Difference for Altcoins” metric, the total sell quote volume of altcoins over the past year has surpassed the buy quote volume by $36 billion. "Unless this metric starts rising again, expecting a full-blown altseason or altcoin FOMO might just be wishful thinking,” Kesmeci emphasized. Even worse, the escalating geopolitical tensions between Israel and Iran are increasing Bitcoin's dominance in the crypto market. It is unfavorable for the altcoin market as the Israeli-Iranian war is unlikely to be resolved in the short term, Kesmeci explained. In addition, the surge in the number of altcoins has led to an overly fragmented market. Data from CoinMarketCap shows that there were 17.34 million altcoin types as of June, representing an increase of 850-fold compared to December 2021.