The altcoin market has endured one of its harshest pullbacks in months, with sharp liquidations wiping out leveraged positions across major assets. According to crypto analyst Michaël van de Poppe, this capitulation phase, though painful, may be part of a larger corrective cycle that still points upward in the long term.
Altcoins Falling Off a Cliff Amid Liquidations
Van de Poppe described the recent selloff as a “complete cliff,” noting that altcoins have been heavily punished while broader crypto sentiment turns defensive. “This market is tough for altcoins and crypto in general,” he wrote, adding that leveraged long positions are being rapidly liquidated as traders flee risk. He stressed that the next one to two weeks will be critical for restoring confidence: “It needs to bounce back fast to secure some stability.”
Thin Order Books Amplify the Decline
In a detailed follow-up, Van de Poppe explained that the steep drop is amplified by limited liquidity across many altcoin markets. He estimated that only around 10% of total supply in most projects is actively tradable. When even a small portion of holders, such as 2% of that float, attempts to sell, order books are unable to absorb the pressure. “Given that everyone was liquidated some weeks ago, the marginal impact of new sell orders is even heavier,” he said. However, he noted that this mechanism cuts both ways: “If sentiment switches, the upside is going to be substantially heavier too.”
A Normal Correction, Not a Breakdown
Despite the intensity of the drop, Van de Poppe remains optimistic that this move represents a normal correction within an ongoing uptrend. Sharing a market capitalization chart, he emphasized that both altcoins and Bitcoin are still following a bullish structure. “Even though the markets are painful, it’s not bad,” he wrote. “The total market capitalization is just having a normal correction… the trend is still up.”
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Patience for the Next Cycle
For long-term holders, Van de Poppe’s message is clear: stay patient. The current weakness stems from short-term liquidity stress, not structural failure. “If you’re holding altcoins, remain patient,” he said. “It’s still coming. The cycle hasn’t peaked.”
As traders watch for stabilization in the coming weeks, analysts like Van de Poppe argue that once confidence returns, the rebound could be just as sharp as the crash that preceded it.