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

Recently, the movement in the crypto market has led to an unprecedented separation between Bitcoin (BTC) and altcoins. Especially, while altcoin investors face sharp declines, Bitcoin's performance stands out. This situation attracts the attention of investors, and it raises questions about the direction in which market dynamics will evolve.

New data shows that the relative profitability rates of altcoins have stabilized in the deep capitulation zone. According to information shared by Glassnode, only about 5% of the altcoin supply is currently profitable. This level represents a significant indication observed during historical bottom periods. On the other hand, in the case of Bitcoin, profitability rates have only just begun to decrease. This situation signals a separation that has not been observed in previous cycles.

Typically, during market downturns, both Bitcoin and altcoins would approach bottom levels together. However, this time, altcoins seem to have collapsed much earlier, while Bitcoin profitability deteriorates at a later stage. This scenario clearly illustrates which asset class is feeling the market pressure more. Analyses indicate that a large portion of altcoin investors are in a difficult situation. Deep capitulation is generally associated with cyclical bottoms, while the delayed decline in Bitcoin profitability suggests that the market has not yet fully reached the bottom.

Glassnode is carefully monitoring whether this separation will be lasting. The unusual break between Bitcoin and altcoins indicates that the crypto market is exhibiting a new behavioral pattern during a period when investor psychology and risk appetite are under pressure. For investors, this situation stands out as an important process that needs to be monitored closely.