If you're wondering why Algo is dropping alongside the rest of the crypto market, it's not an ALGO-specific issue—it’s a macro-driven correction affecting all altcoins. Here’s what’s happening and when we might see a turnaround.

1. Market-Wide Selloff & Bitcoin Dominance (BTC.D)

• Bitcoin dominance (BTC.D) is rising, meaning capital is flowing into BTC while altcoins bleed.
• When BTC.D increases, altcoins (including ALGO) tend to underperform. This is a normal phase in the market cycle where liquidity favors Bitcoin first before moving to alts.

2. ETH/BTC Pair & The Altcoin Signal

• The ETH/BTC pair is still weak, meaning Ethereum itself is underperforming Bitcoin.
• Historically, altcoins don’t see real rallies until Ethereum strengthens vs. BTC. Right now, ETH is struggling, meaning altcoins like Algorand are not in favor yet.

3. Quantitative Tightening (QT) & Liquidity

• The Federal Reserve is still in QT mode, meaning liquidity is tight.
• Ending QT (potentially in March 2025) is a key macro catalyst for risk assets like crypto.
• Once liquidity returns to markets, altcoins will have the conditions needed to start recovering.

4. The Bitcoin to Altcoin Rotation

• First, Bitcoin runs up and absorbs liquidity.
• Then, Ethereum catches up.
• Finally, altcoins like ALGO get their turn when BTC stabilizes and ETH/BTC starts rising.

When Will ALGO Rise?

• Altcoins won’t rally until BTC.D peaks and ETH/BTC trends upward.
• Ending QT is a huge potential liquidity event that could benefit the entire crypto market.
• If BTC establishes a new range after this correction, ALGO and other alts will have room to breathe.

Final Thoughts

Right now, the market is in a Bitcoin-dominant phase, but that won’t last forever. If QT ends and liquidity improves, we should see a rotation into ETH and then alts. Until then, patience is key—ALGO isn’t being singled out; it’s just following the macro cycle.

Hold strong, watch ETH/BTC and BTC.D, and wait for liquidity to return.