The altcoins market is reportedly entering a deep capitulation zone. As a result of this, just 5% of the total altcoin supply is in profit. As per the data from Glassnode, this prolonged capitulation occurs at a time when Bitcoin ($BTC) is witnessing a newly started sharp decline in profits. Hence, this outlook highlights a notable divergence in the current crypto market cycle.
Altcoins Market Faces Comprehensive Capitulation with Just 5% Supply Remaining in Profit Zone
Based on the latest market statistics, the altcoin sector is going through a considerable stress. In this respect, only five percent of the cumulative altcoin supply is in the profit zone. Therefore, the altcoin landscape is experiencing a deep capitulation. Particularly, the “Altcoin Capitulation Zone” signals extreme undervaluation as well as sentiment plunge. Additionally, the historical data points out that the altcoins have been hovering around the respective territory for a prolonged period, indicating limited upside development and extended reluctance.
Capital Consolidates in Bitcoin, Signaling Turning Point
As per Glassnode data, Bitcoin ($BTC) has recently seen a profit decline. This creates a noteworthy gap between the performance of altcoins and Bitcoin ($BTC). The divergence may denote a shift in the broader investor sentiment. At the moment, the capital is at-large consolidating into the flagship cryptocurrency, displaying a bleak outlook in the case of altcoins. Overall, whether the respective divergence resolves or not remains to be seen in the near term.
Source: https://blockchainreporter.net/altcoins-undergo-deep-capitulation-amid-bitcoin-profitability-slump/
