Glassnode's latest analysis highlights a significant divergence between Bitcoin and altcoins, with the latter entering a capitulation phase. Currently, only 5% of the total altcoin supply is in profit, indicating a stark departure from traditional market correlation patterns. This decoupling is attributed to factors such as institutional focus on Bitcoin, regulatory differences, and changing investment strategies.
The analysis suggests that this trend could impact portfolio diversification and risk assessment strategies for investors. As Bitcoin remains relatively stable, the divergence raises important considerations for market timing and investment approaches in the cryptocurrency space.
Bitcoin and Altcoin Divergence Hits Record Levels, Glassnode Reports
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