The cryptocurrency market started strong in July, and investor confidence gradually recovered.
The cryptocurrency market started stronger in July. After weeks of large-scale selling, investor confidence is slowly recovering. Although Bitcoin briefly broke through $64000 and fell back to about $61933, a variety of altcoins continued to record considerable gains. According to data from blockchain analysis platform Sanitation, this shows that funds are quietly flowing back into oversold altcoins as traders gradually get rid of the panic that dominated the market in late June.
Altcoins led gains in the weekly market
Sanitation reported that many altcoins performed well this week. MemeCore led the market with an 89% increase, followed by Cardano (ADA), which rose 25%. DEXE climbed 23%, while Bitcoin Cash (BCH) and WhiteBIT (WBT) rose 22% and 20%, respectively. Ethereum has also shown new vitality after regaining its footing at the $1800 mark. Sanitation\'s online data shows that wallets holding less than 0.01 ETH have increased their supply share by 1.82% in the past month. At the same time, wallets holding 100 to 100,000 ETH increased their holdings by another 1.73%.
This data shows that both retail investors and large position-holding parties are accumulating Ethereum, while most of the selling pressure comes from mid-holding parties, exchange liquidity providers and short-term traders. This balanced accumulation trend is regarded as a positive signal that Ethereum will enter the second half of 2026.
July may usher in stronger altcoin momentum
Cryptocurrency analyst Michaël van de Poppe said Bitcoin appears to be bottoming out or accumulating. As Bitcoin rises and market panic continues to subside, he expects the altcoin to accelerate further. His outlook includes: After Bitcoin breaks through US$65000, the altcoin will break away from its year-long downward trend. He expects this strong momentum to remain for one to two months, followed by a correction in September or October, and another round of sharp gains is expected in the fourth quarter.
Analysts advise investors to remain selective
Despite the improving market outlook, analysts note that not all altcoins will achieve the same recovery. CryptoQuant\'s Darkfost pointed out that nearly 40% of altcoins are still trading below their all-time high of 25%, highlighting the weakness of most assets in the space. There are currently more than 53 million cryptocurrencies on the list, with approximately 60,000 new tokens launched every day, and liquidity is scattered in a larger market than in previous cycles. Therefore, analysts recommend focusing only on projects with strong fundamentals.
At the same time, market commentator Crypto Thro said that as liquidity gradually returns to altcoin, the 2026 altcoin season is beginning to brew. However, analysts agree that careful screening of projects will be more important than simply following the overall market conditions.

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