2026-01-16 18:32:53

Are we witnessing a new degen cycle taking shape?

Yesterday's Bitcoin selloff triggered a broader market correction that caught many off-guard. What stands out: while most altcoins gave back their entire week's gains, a clear divergence emerged in how different asset classes responded.

Core infrastructure assets and AI privacy tokens showed relative resilience. Everything else wasn't so lucky. The market structure yesterday basically boiled down to a few key dynamics:

One, the macro picture—broad Bitcoin weakness cascaded through most of the market. Two, sentiment shifts around InfoFi narratives appeared to accelerate the downside. When narrative-driven sectors face headwinds, the damage spreads fast.

That divergence between what held value and what collapsed matters. It's telling us something about where conviction actually sits right now, and which tokens have real staying power versus which ones were just riding momentum.

BTC0,06%

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GateUser-a5fa8bd0

· 19h ago

Another round of sharp decline, still depends on how long infrastructure and privacy coins can survive... --- NGL infifi narrative collapsed, which accelerates the kill. This time the differentiation is quite obvious, absolutely dead coins. --- So now it's just holding onto infrastructure and waiting for death? Feels like conviction is all an illusion. --- Wait, that selling pressure from yesterday really isn't over... When can we turn around? --- Good grief, narrative coins really don't resist drops. This time, it's time to sift through genuine coins and fake coins again. --- Ask if you don't understand, are infrastructure coins really that stable or have big players all poured in?

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0xOverleveraged

· 19h ago

It looks like it's time to start harvesting again; the only reason AI privacy coins are resistant to falling is—nobody is buying, haha.

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GateUser-1a2ed0b9

· 19h ago

Once again, it's those coins that only follow the trend getting hammered. Infrastructure and privacy can still hold up... This time, you can really see who has real conviction—those are the true bagholders.

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MechanicalMartel