The altcoin market is experiencing significant pressure, with 38% of altcoins trading near their all-time lows. This downturn comes amid a broader market decline, where the altcoin market cap has plummeted by over 48%, from a peak of $1.9 trillion to $981 billion. The decline is attributed to reduced liquidity and capital outflows as investors seek safer assets. Examples of altcoins affected include Lighter (LIT), trading 2.6% above its all-time low and 86% below its all-time high, and Ethena (ENA), which is 7% above its ATL and 93% below its ATH. World Liberty Financial (WLFI) is also struggling, trading 6% above its ATL and 69% below its ATH. The Altcoin Season Index reflects this bearish trend, sitting at 43%, indicating underperformance relative to Bitcoin. Trading volumes have also dropped significantly, with altcoin trading volume falling from $241 billion in October 2025 to $99 billion, marking a 58% decline. Open Interest in derivatives has decreased from $170 billion to $69.5 billion, highlighting a reduced risk appetite. The market's bearish sentiment suggests further declines unless there is a shift in investor sentiment and liquidity conditions.