According to the new data from GlassNode, the Global Altcoin market has one of the sharpest devaluation in history.
Bitcoin (BTC), meanwhile, was relatively stable despite volatile price fluctuations. This shows the distinct divergence between the largest cryptocurrency and the larger Altcoin sector.
Altcoins faces the description of historical evaluation
GlassNode’s latest on -chain newsletter explained last week’s volatility of Bitcoin Market. The macroeconomic conditions, including President Trump’s proposed tariffs on Canada, Mexico and China, have been subsequently listed as driving facts.
This designated tension has created an uncertain environment for investors. In addition, the continuous strength of the US dollar contributed to the limited environmental environment.
Despite these fluctuations, Bitcoin has shown relative stability and fluctuates between $ 93,000 and maximum $ 102,000. This usually represents the market sideways.
The analysis of GlassNode thought that stability offset the momentum of assets with more liquidity and capital flow.
GlassNode said, “As the presence of patient holders increased, it contributed to the stability of the BTC price as the presence of patient holders increased, and even in relatively unstable macro backgrounds, even on relatively unstable macro backgrounds.
Unlike Bitcoin’s relative elasticity, Altcoins faced serious challenges. By using the Principal Component Analysis (PCA), GlassNode declares that most ERC-20 tokens are closely clustered, indicating a wide range of sells throughout the Altcoin market.
This suggests that there are almost no altcoins that can avoid volatility and move independently.
The newsletter said, “The Altcoin division had the largest losses during the recession, and the global Altcoin market cap has experienced one of the biggest devaluation in records.
The seriousness of this sale was clear from the global Altcoin market cap and reduced $ 234 billion over 14 days. But GlassNode admitted that this reduction is not as serious as the previous conflict. This included the Great Miner Migration in May 2021 and the collapse of LUNA/USST and 3AC at the end of 2022.
Is Altcoin Season still a possibility?
Meanwhile, the password analyst at X has noticed the repetitive trend of the encryption cycle. The analyst emphasized that Bitcoin Dominance reached its peak as Bitcoin’s dominance reached a new all -time high, and Altcoin Dominance was the lowest. This stage often creates a sense of despair among Altcoin investors who often feel late at the cycle.
Nevertheless, based on the past trends, the analyst said that the second largest price of Bitcoin generally decreased after the new record is the highest. After that, the altcoin dominance increases.
“I am still expected to lose bitcoin and increase altcoin dominance.
But the analyst said that the current cycle is more powerful because there are fewer investors with more ALTCOINS and Bitcoin at higher prices. Therefore, the money flow first follows Bitcoin, major Altcoin, and finally the middle and low cap altcoin.
Another analyst pointed out the main signal of the Altcoin season.
“Some altcoins are being separated from Bitcoin for the first time since 2022. This is the first signal of Bull Run!” He said.
Analysts believe that a significant Altcoin rally is possible before Bitcoin is officially declared as a preliminary call. He expects Bitcoin’s profit to flow into Altcoin, which can cause Altcoin season.
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