Glassnode Reveals Altcoin Devaluation Amid Bitcoin Stability
New data from GlassNode shows that the global Altcoin market is experiencing one of the clearest depreciation in its history.
Meanwhile, despite price volatility, Bitcoin (BTC) remains relatively stable. This shows a clear difference between the largest cryptocurrency and the wider altcoin sector.
Altcoins face historical depreciation
GlassNode’s latest link newsletter details volatility Last week in the Bitcoin market. Macroeconomic conditions, including President Trump’s proposed tariffs In Canada, Mexico and China, it is listed as the driving facts behind it.
These geopolitics Tensions create uncertain environment For investors. Furthermore, the continued intensity of the US dollar has contributed to a restricted liquidity environment.
Despite these fluctuations, Bitcoin shows relative stabilityfluctuated between the low of $93,000 and the high of $102,000. This indicates that it is usually a side market.
GlassNode’s analysis is attributed to increased liquidity and stability of larger capital flows, thus offsetting the growing asset momentum.
“The increasing resilience and the presence of patient holders contribute to the stability of BTC prices, even in a relatively unstable macro context,” GlassNode Famous.
In contrast to Bitcoin’s relative elasticity, AltCoins faces Major challenges. By using principal component analysis (PCA), the Glass Section declares most ERC-20 Tokens gather closelyindicating that Altcoin Market.
This shows that few altcoins manage to avoid volatility and move independently.
“The altcoin industry caused the heaviest relative losses during the downturn, and the global alternative token market value experienced one of the largest depreciation in its record,” the newsletter read.
The severity of this sell-off is obvious in the global Altcoin market capitalization, down $234 billion in 14 days. However, GlassNode admits that this decline is not as severe as the previous crash. These include the great miner migration in May 2021 and Luna/mouth 3AC collapsed in late 2022.
Is Altcoin season still possible?
Meanwhile, X’s crypto analysts draw attention to the recurring trends in encryption cycles. Analysts stressed Bitcoin Advantages It reached its peak, reaching a new all-time high, while Altcoin advantage occupied the low. This stage usually creates a feeling of despair in Altcoin Investors, they feel later in the cycle.
Still, based on past trends, analysts revealed that Bitcoin’s dominance usually drops after its second big price rises to a new record high. Subsequently, Altcoin’s advantage increased.
“I still hope that Bitcoin’s advantage will decline, and altcoin’s advantage will increase” postal read.
However, analysts say the current cycle is more intense as more and fewer investors hold Bitcoin at higher prices. Therefore, the currency flow follows Bitcoin first, then the main altcoinsand finally the medium and low-size altcoins.
Another analyst also pointed out the main signals of the Altcoin season.
“Some Altcoins have been decoupled from Bitcoin for the first time since 2022, and this is the first signal of the bull’s running!” statement.
The analyst believes that before Bitcoin officially announced its reserve currency, it is likely to be before Bitcoin. He expects Bitcoin’s profits to flow into altcoins, which may trigger Altcoin Season.
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