Grayscale Head of Research Zach Pandl says the recent performance of leading altcoins may signal that the worst of the selling pressure is over, even as the broader crypto market remains well below its peak. In a blog post published Thursday, Pandl acknowledged that the firm cannot confirm crypto markets have bottomed. Speaking separately in an interview on Monday, however, he described the price action across altcoins as notably encouraging given the difficult macroeconomic backdrop.
“Altcoins are trading remarkably well over the last month in the context of a challenging macro environment,” Pandl said, pointing to factors including the U.S.-Israel conflict with Iran and a notable decline in equities. He suggested the recent price behavior could indicate a more durable floor has formed, while cautioning that this has yet to be confirmed. Despite that uncertainty, he characterized the trend as a positive signal for the asset class.
The total value of all cryptocurrencies tracked by CoinGecko peaked at approximately $4.37 trillion in October before declining sharply. As of Monday, the global crypto market capitalization stood at $2.47 trillion, representing a drop of roughly 43%. Leading altcoins including Ethereum, Solana, Avalanche, and Chainlink have all sustained significant losses from their highs during that period.
Over the past month, however, some of those assets have shown modest recovery. Ethereum has risen 9.2% to $2,160, while Chainlink has gained 3.8% to $9.08. Solana edged down 1.9% to $82 over the same timeframe. Despite these moves, there remains broad agreement across the industry that crypto is currently in a bear market.
Pandl noted that traders with shorter time horizons may prefer to wait for clearer catalysts before adding altcoin exposure. For investors with longer-term outlooks, he suggested current price levels could represent compelling entry points, particularly if they can tolerate continued near-term volatility. He also pointed to the potential passage of the Clarity Act crypto market structure bill as a development the industry has been watching closely, with experts suggesting it could drive institutional adoption through greater regulatory certainty.
On the stablecoin front, Coinbase Chief Legal Officer Paul Grewal signaled last week that a resolution among lawmakers over stablecoin rewards may be approaching. Pandl highlighted a disconnect between current altcoin valuations and improving fundamentals, including regulatory progress and the growing adoption of stablecoins and tokenization. He specifically identified Ethereum and Solana as assets positioned to benefit significantly from those trends, arguing that Bitcoin stands to gain comparatively less from regulatory clarity and the adoption of tokenized assets.
Not all market observers share Pandl’s measured optimism. Bitcoin has already fallen nearly 45% from its October all-time high of $126,000 to under $70,000, and Bloomberg Intelligence strategist Mike McGlone reiterated on Sunday that a drop to $10,000 remains possible this year. Other analysts have cited potential Bitcoin floor levels of $55,000 or $50,000. On prediction market platform Myriad, traders assigned a 58% probability that Ethereum’s next significant move would be a decline to $1,500 rather than a rally to $3,000, reflecting continued short-term bearishness toward the top altcoin.
Originally reported by Decrypt.
