Crypto Market Cap Breaking Out of Downtrend as 2026 Nears

Cryptocurrencies have had a brutal 2025, but their days of being held down may be approaching an end. The entire industry’s market cap is breaking out of the prolonged downtrend it has been in, offering hope at last.

According to a chart shared by a crypto analyst known on X as Moustache, the total crypto market cap is repeating a similar pattern seen in previous years, and may be about to break the bearish trend of three months. Interestingly, this is coming at exactly the end of the year, raising expectations that 2026 will be good for crypto.

Will 2026 be the Year of Altcoins?

The year 2025 was one of the most negative years for crypto in the history of the industry. Many altcoins became exhausted and knocked out of the race, causing analysts to believe that many more will fail in the new year. However, many positive expectations also await the industry in 2026.

While altcoins reached a new low in their performance and many have admittedly failed, many others are also expected to survive into 2026 and even blossom again. The impressive rally that gold experienced has left the crypto market in the dust, which is a deviation from the historical patterns. As a result, investors still hope for a better 2026 as the profits from the rally are expected to flow into Bitcoin and then altcoins.

This expectation is supported by some analysts who believe that altcoins are about to break the downward trend and could be on their way up in a matter of days. They argue that the six-month old downward trend, though brutal, may be coming to an end as altcoins hit rock bottom.

As we enter 2026, investors expect to reap the benefits they never got to enjoy in 2025 due to the bear market that some suspect was engineered by major players in the industry. Meanwhile, Bitcoin, the number one crypto asset still suffers to this point, and there’s no relief in sight for the asset yet.

How Altcoins are Doing Currently

Crypto market cap may be on its way to a breakout, but the market remains mainly bearish for now. According to data from Coinmarketcap, top altcoins and Bitcoin have failed to hold key support levels, thus increasing uncertainty.

All top ten crypto assets are in the red except BNB with a marginal 24-hour gain. Though a better 2026 may await crypto, the bears are more in control at the moment and it isn’t clear when the trend will change.

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