How to Respond When Altcoins Keep Weakening After a Prolonged Market Decline
After three months of continuous weakness in the crypto market, it is understandable that holding altcoins has caused portfolios to steadily deteriorate. Most altcoins have declined more sharply than Bitcoin and show very weak recoveries during broader market rebounds. At present, capital is not flowing into altcoins but is instead staying on the sidelines in stablecoins or concentrating in BTC and ETH. Therefore, investors need to accept the reality that “holding alts and waiting for a bounce” is no longer an effective strategy. The first necessary step is to cut weak altcoins, especially those that fail to recover when Bitcoin rebounds. After that, the portfolio should be simplified to make it easier to manage and reduce risk. Holding too many altcoins only increases psychological stress and drags down overall performance. Increasing the USDT allocation to around 50–70% helps preserve capital while the market direction remains unclear. The remaining capital should only be allocated to BTC, ETH, or a small number of altcoins that clearly show relative strength. During the period of holding USDT, investors should focus on observing market structure rather than trading frequently. Key signals to watch include Bitcoin reclaiming key levels, Total2 or Total3 forming higher lows, and capital rotating back into altcoins. Averaging down on altcoins while the broader trend is still bearish should be strictly avoided. Investors should also not be misled by short-term pumps that lack confirmation from real capital inflows. At this stage, the primary goal is not to generate high profits but to protect capital. When the market truly reverses, clearer and safer opportunities will emerge. Traders who preserve capital through the downtrend always hold a significant advantage.
