Bitcoin News: BTC Weakens as Altcoin Profits Flatten?

Bitcoin news opened with a stark on-chain signal as Glassnode reported a growing split between Bitcoin and altcoin profitability.

The analytics firm said altcoin relative profits are “stabilizing in deep capitulation territory, with only 5% of supply in profit,” while “Bitcoin’s profits have just begun to decline sharply.”

These findings point to widening stress in markets and an unusual decoupling that traders should note.

Glassnode’s update shows Bitcoin moving into a renewed phase of weakening profit metrics. The firm flagged a clear decline in the percent of Bitcoin supply currently in profit.

That decline signals fresh downside pressure for holders who bought at higher levels. The data imply that Bitcoin is now shouldering the bulk of immediate market capitulation.

By contrast, altcoin profitability has largely flattened at very low levels. Glassnode reports roughly 95% of altcoin supply is at a loss, meaning only about 5% sits in profit.

The analytics firm calls this state “deep capitulation territory.” Crucially, Glassnode notes that while altcoin losses remain severe, the pace of further deterioration has eased. In simple terms, altcoins are deeply out of the money, but losses are no longer accelerating.

A Rare Divergence in Correlation

The split between Bitcoin and altcoins marks a rare decoupling in Bitcoin news. Glassnode describes the divergence as “unprecedented” relative to prior cycles.

Historically, Bitcoin and altcoin profit metrics have moved in tandem through major market phases. That relationship has broken down.

The divergence changes the tactical landscape for traders and portfolio managers following Bitcoin news: capital may rotate differently, and BTC-denominated altcoin pairs could see outsized volatility.

Glassnode also pointed to social and on-chain signals that align with the profit statistics. Most altcoins remain unprofitable, and social engagement reflects that stress.

While the firm did not link specific social indices in its post, the broader takeaway in Bitcoin news is clear: retail and on-chain sentiment remain muted across many alt tokens even as the immediate rate of loss has slowed.

For those monitoring Bitcoin news, the data carry two practical implications. First, a deeper Bitcoin drawdown could eventually drag altcoins lower again, despite current stabilization.

Second, the relative flattening of altcoin losses could set the stage for selective recoveries if Bitcoin finds a base. In other words, altcoins may offer tactical opportunities only if Bitcoin’s downward momentum pauses.

Outlook — What to Watch Next in Bitcoin News

Glassnode’s dataset highlights a few specific items to watch. Track whether Bitcoin’s profit metric continues its sharp decline or stabilizes.

Watch altcoin profitability to see if flat lines turn into recoveries or renewed drops. Monitor on-chain distribution patterns and fresh social metrics for signs that selling pressure is easing.

Finally, note changes in correlation between BTC and altcoins; a re-coupling would alter risk allocation across portfolios.

Glassnode’s snapshot offers a disciplined, data-first view: Bitcoin is showing renewed weakness while altcoin profits have reached a low, stabilizing plateau.

For now, crypto markets remain in a precarious phase. Some portfolio managers might view the flattening of altcoin profit metrics as a sign that extreme selling is waning, cautiously eyeing opportunistic entries if broad sentiment improves.

However, with sustained Bitcoin outflows and social sentiment at multi-year lows, clear bullish signals are still elusive. In the short term, traders and investors in crypto markets will be watching these on-chain indicators closely to see if a bottom is forming or if the capitulation trend will extend further.