Market Recap: Alts Flail as Risk Assets Face Brutal Sell-Off

The past week has been a turbulent one for risk assets, with significant declines across the board leaving investors wondering what is causing the market turmoil. The S&P 500 saw its largest weekly sell-off since last October, while Bitcoin and other cryptocurrencies experienced substantial losses as well.

Bitcoin’s decline in price led to a surge in dominance, causing a massacre of altcoins as investors flocked back to the leading cryptocurrency. This shift in market dynamics has left many questioning whether the long-awaited alt season is still on the horizon.

The timing of these losses is particularly notable, as they coincide with tax season in the United States. Many traders may be selling off assets to cover tax liabilities from gains made in 2023, adding additional selling pressure to the market.

However, with Friday marking the deadline for many traders to sell in time for tax obligations, it is possible that we may see a rebound in markets next week as this source of selling pressure eases. Only time will tell if this week’s brutal sell-off was just a temporary blip or the start of a more prolonged downturn.