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The devaluation of the altcoin market began to slow down in the first week of March despite several negative geopolitical developments. Also, the new PMI revives hope that altcoins will recover soon.
However, any recovery may face major challenges with the continued increase in the proportion of altcoins trading near all-time lows.
Why can a PMI report affect capital flows in the altcoin market?
A positive macroeconomic signal has just emerged, bringing renewed optimism. The US ISM Manufacturing PMI has been above the 50 mark for two consecutive months.
The ISM Manufacturing PMI reflects the survey results of purchasing managers on their business conditions. It helps assess whether the US manufacturing sector is expanding or contracting.
In particular, the February 2026 PMI has arrived to 52.4. Although it came in slightly below January’s 52.6, it beat expectations of 51.8.
Historical data shows that when the DMI of the ISM is above 50 – which indicates an economic expansion – it often coincides with strong demonstrations in Bitcoin and altcoins.
description Analyst Ash Crypto says that when the PMI exceeds 50, the US economy enters an expansion phase. Corporate profits rise. The family income is better.
Consumer spending is accelerating. Investors’ appetite for risk has become stronger.
“If the ISM stays above 50 for a few more months, the crypto boom may end soon,” he said. She stated Ash Crypto.
expected Analysts believe that the ISM Manufacturing PMI that remains above 50 for two consecutive months indicates the beginning of a new business cycle in the United States. This environment creates favorable conditions for capital to flow into high-risk assets such as cryptocurrencies.
Analyst Matthew Hyland combined PMI data with historical patterns and noted that altcoin dominance just confirmed a breakout signal.
A rising PMI, coupled with a monthly MACD-H recovery and a breakthrough of the falling wedge pattern in altcoin dominance, point to a possible scenario. For the altcoin season In 2026.
38% of altcoins are trading near all-time lows
A recent report from CryptoQuant analysts reflects a still bleak outlook for altcoins.
male Darkvost, an analyst at CryptoQuant, said that about 38% of altcoins are trading near all-time lows. This represents the lowest level of the current cycle and looks even worse than the period immediately following the FTX collapse.
“This chart perfectly illustrates the current state of altcoins. Investors remain cautious and continue to lose interest in altcoins, “He explained Dark party.
However, he added, the very deteriorating conditions could create an environment where opportunities begin to emerge.
A recent report from BeInCrypto highlighted Highlight additional cues in March indicating that altcoins may be recovering. However, the overwhelming number of altcoins combined with tight liquidity conditions may limit the extent of any rebounds.
