New data from Glassnode has revealed that the global altcoin market is undergoing one of its sharpest devaluations in history.

Meanwhile, Bitcoin (BTC) has remained relatively stable despite volatile price swings. This showcases a stark divergence between the largest cryptocurrency and the broader altcoin sector.

Altcoins Face Historic Devaluation 

Glassnode’s latest on-chain newsletter detailed the volatility in the Bitcoin market last week. Macroeconomic conditions, including President Trump’s proposed tariffs on Canada, Mexico, and China, were listed as the driving facts behind it. 

These geopolitical tensions created an uncertain environment for investors. In addition, the continued strength of the US dollar contributed to a constrained liquidity environment.

Despite these fluctuations, Bitcoin demonstrated relative stability, fluctuating between a low of $93,000 and a high of $102,000. This indicated a generally sideways market. 

Glassnode’s analysis attributed the stability to increased liquidity and larger capital flows, which offset the momentum of a growing asset.

“The growing presence of a more resilient and patient holders has contributed to the stability of BTC prices, even amidst a relatively unstable macro backdrop,” Glassnode noted.

In contrast to Bitcoin’s relative resilience, altcoins have faced significant challenges. By using Principal Component Analysis (PCA), Glassnode declared that most ERC-20 Go to Source to See Full Article
Author: Kamina Bashir