Altcoin Market Drops Nearly 10 Percent, Analyst: Healthy Corrections After Sharp Reli

Altcoin illustration (photo: Unsplash)

JAKARTA - The altcoin market experienced a sharp correction in the last week of July 2025, with its market capitalization dropping nearly 10% from USD 1.57 trillion to USD 1.4 trillion.

This decline triggered a massive liquidation of more than $840 million in the last 24 hours, the majority coming from the long position of traders' leverage.

Tokocrypto analyst, Fyqieh Fachrur, believes that this correction is a reasonable phase in the market cycle. He said that the action of profit after four consecutive weeks of increase was healthy, and this was not a sign of a reversal of trends, but part of natural consolidation.

Fyqieh also added that as long as Bitcoin remains strong and does not enter a downward trend, altcoins have the potential to recover in the near future.

Despite the pressure on the market, according to the Fyqieh, market sentiment as a whole is still in the "Greed" zone according to the Crypto Fear & Greed Index, which suggests that market participants have not yet entered the panic phase.

Fyqieh appealed to investors to remain alert to potential fake signals in the altcoin market. Because according to him, altcoins historically do have higher volatility than Bitcoin, especially when BTC's market dominance persists at a high level, which is around 52-53%.

"In the market phase like now, investors need to implement a disciplined risk management strategy. Corrections can be an opportunity, but they still need to be careful because the market can change course quickly," said Fyqieh.

La menambahkan, apabila Bitcoin gagal mencetap level tertinggi baru dan justru bergerak mendatar, dana yang sebelumnya meluncur ke altcoin berpotensi ditarik kembali secara agresif.

"Therefore, a short-term approach with a strong technical analysis is key in dealing with this correction-prone market," he concluded.