**[Analysis: The Token Market, Excluding Bitcoin, Has Been in a Bear Market Since December 2024, and Expectations for Altcoins Outperforming Remain Low]** BlockBeats news, February 9, according to The Block, Bitcoin suddenly plunged over 20% this week. Although prices have partially rebounded since then, managers of several crypto funds stated that this drop caught them off guard. Zaheer Ebtikar, founder and Chief Investment Officer of Split Capital, said: "I think almost no one truly anticipated that such a level of panic selling would come so quickly." The common view among multiple interviewees is that the issue does not lie in a single clear trigger but rather in the speed of the market collapse: sentiment shifted rapidly, fear indicators surged, and massive spot selling triggered cascading liquidations, resulting in a chain reaction of declines. Ray Hindi, co-founder and managing partner of L1D AG, stated: "Many traditional finance (TradFi)-related themes became noticeably overstretched and crowded in January. The subsequent sharp deleveraging and pullback transmitted shocks to the crypto market, which is still grappling with severe, unresolved structural issues left behind by the October 10 liquidation event." He believes this drop also reflects the structural cleanup process of the market. This reshuffling helps eliminate excess and allows truly valuable projects to stand out. Cosmo Jiang, general partner at Pantera Capital and head of the firm's liquid token strategy, said the recent volatility is part of a cumulative trend over the past few months. He pointed out that since December 2024, the non-Bitcoin token market has essentially been in a bear market and described the year-to-date performance as a continuation of a "rolling bear market" across most altcoin markets. As pressure on risk assets spreads, selling pressure accelerates, forcing traders who had previously shifted to precious metals to sell crypto assets to meet margin requirements. Expectations for altcoins outperforming the market remain low. Most investment managers indicate that the market is shifting toward high-quality, fundamentally driven investments. Joscha Kuplewatzky of Wintermute Ventures stated that the market may currently be in the late cycle stage, making it unsuitable to bet broadly on altcoins outperforming. He believes that unless retail investors become active again, any upward movement is more likely to be short-term and specific to certain sectors. Additionally, several investors noted that cryptocurrencies are no longer the preferred choice for new capital.