Bitcoin Profitability Declines as Altcoins Plunge to Capitulation: Only 5% of Altcoins in Profit, Unprecedented Market Divergence

COINOTAG News, citing Glassnode data, reports that the relative profitability of altcoins has entered a deep capitulation zone. Only about 5% of the altcoin supply sits in profit, signaling a broad risk-off shift and a compression of upside across the sector. The unusual divergence suggests a weaker cyclical signal for altcoins while Bitcoin traders reassess fundamental momentum, framing a potential near-term risk-reward recalibration for diversified crypto portfolios.

Meanwhile, the Bitcoin profitability ratio has begun to decline sharply, a development that contrasts with the battered altcoin layer. This unprecedented divergence, not seen in prior cycles, highlights evolving on-chain dynamics and shifts in profit distribution within the market. Analysts will monitor on-chain metrics, realized vs. unrealized gains, and liquidity trends to contextualize whether BTC-driven capitulation stabilizes or deepens, even as altcoins remain in a capitulation regime.

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