Crypto Week: Altcoins are in the volatility trap!

Crypto Week: Altcoins are in the volatility trap!

The crypto market is showing its volatile side this week, August 11, 2025. While Bitcoin (BTC) remains relatively stable, many altcoins are experiencing dramatic price movements. This is attracting the attention of both investors and analysts who are critical of the current market situation.

How IT Boltwise reported, altcoins have suffered significant gains this week. Particularly striking is Aerodrome Finance (AERO), whose price has risen an impressive 56%. After peaking above $1.25, the coin is now trading at $1.17, indicating strong demand and active DEX trading on the Coinbase app. Mantle (MNT) is similarly encouraging with an increase of almost 52%, supported by positive developments in the network and the appointment of new advisors from Bybit's management level.

Winners and losers at a glance

Another altcoin to stand out this week is Lido DAO (LDO) with a 47% increase. An upcoming tokenholder update call from Lido Labs on August 14th could further support this trend. But while some altcoins are thriving, others are reporting noticeable losses. Monero (XMR) suffers from centralization fears as a mining pool controls a significant portion of the hashrate. This caused the price to fall. Toncoin (TON) also saw a decline of over 10%, despite an initial increase due to new integrations with Telegram. XDC Network (XDC), on the other hand, lost more than 5% due to continued selling pressure and weak buying interest.

Analysts from Crypto Insights warn about the risks of market volatility. This brings with it both opportunities and dangers for investors. Bitcoin is considered the leading digital currency, while altcoins are increasingly exposed to strong corrections in times of market instability. Despite these challenges, analysts are observing that some altcoins, such as Binance Coin and Ethereum, are attracting investors, indicating a change in investor psychology.

Market psychology and risks for investors

The high volatility in the crypto market requires investors to continually keep themselves informed about current developments and prices. Analysts point out that sudden market swings could trigger mass liquidations. Therefore, it is advisable to develop diversified strategies that include both Bitcoin and promising altcoins. Loss limits should be set to protect against unexpected events.

Overall, Bitcoin remains a key player in the cryptocurrency space, often viewed as an indicator of market sentiment. Historically low correlations with the VIX could indicate possible price trends. At the same time, CEO Joao Wedson of Alphractal warns of overexpansion in the Bitcoin market, which could also have a negative impact on altcoin prices. Therefore, investors need to analyze the underlying factors of price movements and monitor current regulatory developments to make informed decisions.