An analyst on X is sounding the alarm, claiming the 2025 crypto cycle seems harsher than expected, with even major altcoins failing to make any real gains. Route 2 FI reports that top digital assets like Solana (SOL), Ethereum (ETH), and Bitcoin (BTC) are trading close to their December 2024 levels. Meanwhile, market sentiment has hit new lows as many investors grow frustrated and wary due to the increasing difficulty in finding profitable trades.
### Structural Weaknesses Across Altcoins
In a lengthy post on X, the market observer noted that the top 50 altcoins are now trading below their post-FTX 2022 levels, reflecting how quickly investor optimism has faded. According to him, factors such as an oversaturated market, tokenomics that fail to maintain value, and high initial valuations have made it challenging for even the strongest projects to sustain liquidity.
His analysis paints a picture of a changing market where traditional patterns no longer guarantee profits. For instance, a centralized exchange (CEX) listing no longer triggers a price pump, and venture-backed tokens often flood the market after significant unlock events, increasing selling pressure.
The analyst also highlighted how this challenging environment has impacted traders. The recent sell-off in early October left more than a million active traders with empty portfolios, likely discouraging many from investing new capital into crypto anytime soon.
“After Black Friday, around half of crypto traders lost everything, and many of them might not come back to trading again,” he remarked.
### Market Movements and Geopolitical Impacts
During the sell-off, BTC dropped sharply from over $122,000 to about $101,000 before recovering to $116,000. Since then, it has experienced multiple downturns, dipping below $104,000 at one point amid escalating geopolitical tensions between the United States and China.
Ethereum also dipped below $3,700 but has since bounced back to around $4,000. Despite this recovery, ETH remains down approximately 18% from its all-time highs, highlighting ongoing volatility.
Meanwhile, altcoins such as Cardano (ADA), Hyperliquid (HYPE), SUI, and Binance Coin (BNB) have posted weekly losses ranging from 7% to 17%, emphasizing the broad weakness across the altcoin market.
### Structural Challenges in the Crypto Cycle
Route 2 FI’s assessment underscores a broader truth: the difficulties in this crypto cycle are structural rather than temporary. He points to “too many tokens, tech we don’t need, projects that haven’t found product-market fit (PMF), and tokenomics that don’t work,” highlighting a mismatch between market supply and genuine demand.
He further explains that the continuous influx of new tokens with high, fully diluted valuations diverts capital away from existing assets, intensifying market competition and reducing profitability.
### Adaptability as a Path Forward
Despite the bleak market conditions, Route 2 FI offers valuable advice for traders aiming to survive and thrive. He emphasizes the importance of specialization, encouraging traders to develop unique skills to uncover opportunities in an increasingly crowded market. Whether through trading expertise, content creation, or networking, building a distinct niche can provide an edge.
Moreover, he suggests leveraging social media platforms like X to gain visibility, connect with mentors and partners, and explore potential career paths—even when the market lacks strong momentum.
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https://cryptopotato.com/why-altcoins-are-struggling-and-investors-are-feeling-the-pressure/