New Glassnode data have revealed that the global Altcoins market is undergoing one of the most pronounced devaluation in history.

Meanwhile, Bitcoin (BTC) remained relatively stable despite price fluctuations. This highlights a clear divergence between the largest cryptocurrency and the broadest sector of altcoins.

The historical devaluation of altcoins

Glassnode’s last on-chain newsletter detailed the Volatility in the Bitcoin market last week. Macroeconomic conditions, including the rates proposed by President Donald Trump 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 continuous force of the US dollar contributed to a restricted liquidity environment.

Despite these fluctuations, Bitcoin demonstrated relative stability, ranging from a minimum of $ 93,000 and a maximum of $ 102,000. This indicated a usually lateral market.

Glassnode analysis attributed stability to increased liquidity and larger capital flows, which compensated for the impetus of a growing asset.

The growing presence of more resilient and patient holders contributed to the stability of BTC prices, even in the midst of a relatively unstable macro scenario, noted Glassnode .

In contrast to Bitcoin’s relative resilience, the altcoins faced significant challenges. Using Main Component Analysis (PCA), Glassnode stated that most ERC-20 tokens were closely grouped, indicating a widespread sale in the Altcoins market.

This suggested that few altcoins managed to avoid volatility and move independently.

The Altcoins sector suffered the highest relative losses during the fall, with the global altcoins market value experiencing one of the largest devaluation ever recorded, the newsletter said.

The severity of this sale was evident in the capitalization of the global Altcoins market, which saw a decline of US $ 234 billion over a period of 14 days. However, Glassnode recognized that this fall was not as severe as previous crashes. These included the great migration of the miners in May 2021 and the collapses of Luna/UST and 3ac in late 2022.

Is a season of Altcoins still possible?

Meanwhile, an X -CRIP analyst drew attention to a recurring trend in crypto cycles. The analyst pointed out that the dominance of Bitcoin reaches peaks when it reaches new historical records, while the dominance of altcoins reaches minimal. This phase often creates a feeling of despair among Altcoins investors, who are late in the cycle.

However, based on past trends, the analyst revealed that Bitcoin’s dominance usually decreases after its second major price jump for new records. This is followed by an increase in the dominance of these coins.

I still hope that the dominance of Bitcoin falls and the dominance of altcoins increases, said the post.

However, the analyst addressed that the current cycle is more intense due to more altcoins and fewer investors keeping Bitcoin at higher prices. Thus, the money flow goes first to Bitcoin, then to the main altcoins, and finally, for medium and low capitalization altcoins.

Another analyst also pointed out an important sign for the season of these coins.

Some altcoins are being detached from Bitcoin for the first time since 2022 – this is the first sign of the rise! he stated.

The analyst believes that great Altcoins rallies are likely before Bitcoin is officially declared the reserve currency. He expects Bitcoin’s profits to flow to the Altcoins, which could trigger a season of Altcoins.