According to @CryptoMichNL, the first trading day of last month saw a massive sell-off in altcoins and the first trading day of this month shows a broad market sell-off. According to @CryptoMichNL, this recurring drop is likely tied to portfolio rebalancing flows that typically resolve within 1 to 2 days. According to @CryptoMichNL, he expects markets to stabilize and turn back up after that window, signaling short-term volatility followed by a potential bounce.

According to Michaël van de Poppe (@CryptoMichNL), current market conditions present buying opportunities in select altcoins during the price dip. Traders are monitoring Ethereum, Solana, and Avalanche due to their strong network activity and upcoming upgrades, which could drive price rebounds once sentiment improves (source: @CryptoMichNL, Twitter, May 31, 2025). Historical data shows that previous dips have attracted institutional accumulation in top altcoins, suggesting potential for short-term recoveries. Active traders are watching volume spikes and oversold RSI signals to identify optimal entry points.

According to Miles Deutscher, the recent altcoin dip has been particularly harsh on retail investors, marked by significant losses due to high volatility and a lack of liquidity in the market. Deutscher highlighted that many retail investors were caught off guard by the rapid depreciation of altcoin values, leading to forced liquidations and substantial financial setbacks. This downturn underscores the risks associated with volatile altcoin markets, especially for those without diversified portfolios.