Author：Encryption Tracker

Grayscale recently shared a report suggesting that the current market situation may present “potentially compelling entry points” for altcoins.

The crypto market has struggled amid the downturn that started in Q4 2025, as sentiments turn sour. Despite this, asset manager Grayscale Investments believes the current situation may present a chance for investors to enter the altcoin market at more favorable levels.

Key Points

• The crypto market has been in a downturn since Q4 2025, but Grayscale says current altcoin prices may present strong entry opportunities.
• Crypto has shown relative strength recently, with the Grayscale Crypto Sectors Index gaining 4% in March.
• The total crypto market cap has risen by $25.93 billion, up 1.15% this week, to reach $2.29 trillion.
• Altcoins remain heavily discounted, down about 59% from their highs since January 2024.
• Despite this, Grayscale maintains that the market has not yet confirmed a bottom.

Grayscale Identifies “Potentially Compelling Entry Points”

Grayscale shared these findings in its latest market report. The firm emphasized that choosing the right time to invest is never easy, especially with ongoing war-related tensions affecting the global economy. 

However, it noted that several major altcoins now trade at levels that look appealing. The report specifically mentioned assets such as Ethereum (ETH), Solana (SOL), Chainlink (LINK), Sui, and Avalanche (AVAX) as examples.

Grayscale also highlighted the recently improving market performance. Over the past month, crypto assets have shown some strength, as traditional markets struggled. For instance, the S&P 500 dropped by about 5% in March, while the Grayscale Crypto Sectors Index rose by roughly 4% during the same period.

Crypto Market Showing Newfound Resilience

The firm said this contrast could mean that crypto assets have been oversold and are now stabilizing amid still-positive fundamentals. This may explain why prices have held up better than expected in recent weeks.

Data from the global crypto market cap index (TOTAL) confirms the bullish situation. After the latest market drop, TOTAL has started to recover, with the current weekly candlestick turning green. The market has added $25.93 billion over the week, a 1.15% increase, bringing the total value to $2.29 trillion.

The altcoin market cap index, TOTAL2, has also moved higher, rising by 0.63% and adding $6.26 billion during the same period. At the same time, the red bars on the MACD histogram in the weekly TOTAL chart have begun to shrink. This suggests that while sellers are still in control, their pressure is starting to weaken.

Historical Valuation Indicates Undervaluation

Looking at past performance, Grayscale noted that altcoins remain below their previous highs. Since the launch of crypto exchange-traded products in January 2024, its altcoin basket has declined by about 59% from its peak and has gained only around 2% from its lowest point.

This places current prices close to the lower end of their three-year range. While the firm expects volatility to continue, it said that these lower levels could present a good entry point compared to recent history. Although Grayscale said it cannot confirm that the market has reached its bottom, it sees recent price movements as a positive sign.

Notably, a previous report from The Crypto Basic referenced CryptoQuant data, which shows how much pressure the altcoin market is under. Specifically, more than 40% of altcoins are now trading close to their all-time lows, indicating deep losses across the sector.

While Bitcoin has remained relatively stable, major altcoins such as Cardano, XRP, and Solana are far below their previous peaks, with some like ADA down as much as 92%. 

Interestingly, most analysts also believe the current downturn could create opportunities. However, they insist that investors need to be careful and focus on stronger projects, as competition in the altcoin market continues to increase.

Altcoin Trading Strategy

Elsewhere, crypto market veteran Michaël van de Poppe shared a similar suggestion while discussing his approach to altcoins. He said he is currently keeping 50% of his portfolio in AI-related altcoins.

According to him, if Bitcoin drops further, altcoins will likely fall as well. However, he expects them to recover more strongly when the market turns upward. Based on this, van de Poppe confirmed that he continues to invest regularly using a dollar-cost averaging strategy, adding to his positions every month.