Bloomberg: The crypto winter of "altcoins" has arrived ahead of schedule, unlocking incentives for some investors to exit

According to Bloomberg, the selling behavior of some early investors and founders seems to be causing a "cryptocurrency winter" for "altcoins." CoinMarketCap data shows that since Bitcoin hit its peak price in March this year, the market value of altcoins (tokens other than Bitcoin, Ethereum, or stablecoins) has fallen by nearly 30%, while Bitcoin still accounts for more than 50% of the estimated $2.4 trillion digital asset market. This year, tokens from many projects began to "unlock," allowing venture capitalists and founders to sell early acquired digital assets. TokenUnlocks data shows that out of the 138 tokens tracked, 120 have unlocked this year, with a total market value of about $58 billion. This trend contrasts with the rebound in the cryptocurrency market, providing a good opportunity for long-term investors to sell. Edward Chin, co-founder of Parataxis Capital, pointed out that because the unlocking date is public, non-venture capital holders may sell early, exacerbating the price decline. At the same time, the discounted sales of tokens in the over-the-counter market also exacerbated market pressure. CoinMarketCap data shows that the prices of tokens such as DYDX, AVAX, and PYTH have all fallen sharply, with DYDX falling by more than half since mid-March. Tanawat Chiewhawan, CEO of TokenUnlocks, said that although token unlocking will boost prices in 2023, market participants have a deeper understanding of unlocking and supply-side data, leading more people to pursue short-term profits rather than long-term holdings. CCData shows that out of about 90 top non-stablecoin assets tracked on centralized exchanges, only 12 assets have recorded positive returns since Bitcoin hit a new all-time high on March 14, while 81 assets have recorded negative returns. Bitcoin has fallen by about 12% after reaching nearly $74,000, while 61 out of the top 100 tokens have fallen by more than 25%, and 23 digital assets have fallen by more than 50%.Experts point out that the price of altcoins is related to the price of major network tokens such as Ethereum or Solana. When they fall, smaller altcoins are usually the first to be sold, and token unlocking further exacerbates selling pressure. Token economics expert Lex Sokolin said that the current market situation is strange, with many infrastructure projects funded by investors during the bear market period now launching tokens, but these tokens did not have many regular buyers at high prices.