Historical Divergence in Bitcoin and Altcoins: What Will Prices Be?

The recent volatility in the crypto market has led to an unprecedented divergence between Bitcoin (BTC) and altcoins. Especially, altcoin investors are facing sharp declines, while Bitcoin's performance is drawing attention. This situation intrigues investors, raising curiosity about the direction of market dynamics.

New data shows that the relative profitability rates of altcoins are stabilized in a deep capitulation zone. According to information shared by Glassnode, only about 5% of the altcoin supply is in profit. This level represents a significant indicator typically seen during historical bottoming periods. On the other hand, profitability rates in the Bitcoin sector have just begun to decline. This situation points to a divergence that has not been observed in previous cycles.

Typically, during market downturns, both Bitcoin and altcoins approach bottom levels together. However, this time, altcoins seem to have collapsed much earlier, while Bitcoin's profitability deteriorates at a later stage. This picture clearly reveals which asset class is feeling the market pressure more acutely. Analyses indicate that a significant portion of altcoin investors are in troubled waters. While deep capitulation is generally associated with cyclical bottoms, the delay in profitability decline for Bitcoin suggests that the market has yet to reach a full bottom.

Glassnode is closely monitoring whether this divergence will be permanent. The extraordinary break between Bitcoin and altcoins indicates that the crypto market is exhibiting a new behavioral model in a period where investor psychology and risk appetite are under pressure. For investors, this situation stands out as an important process that needs to be carefully monitored.