Key Market Indicators
- •Only 5% of the top 500 altcoins are currently in profit, indicating a historic capitulation phase.
- •Bitcoin has seen a 23% drop from its all-time high, aligning with previous cycle lows and pressuring short-term holders.
- •Over $2.3 billion in long liquidations have occurred, and a negative Coinbase premium suggests ongoing market weakness.
Altcoin Market Stress
Altcoin holders are experiencing significant pressure, with only 5% of the top 500 altcoins remaining in profit, according to data from Glassnode. The median altcoin profit supply has entered a zone historically associated with capitulation, demonstrating a stark divergence from Bitcoin's comparatively more stable profit supply.
This divergence is becoming more pronounced as Bitcoin, despite its own recent decline, maintains a higher profit level relative to altcoins. The Bitcoin relative supply in profit remains above 60%, while altcoins have fallen below 20%. This marks a rare decoupling event in the market.
Bitcoin's Drawdown and Holder Impact
Bitcoin itself has experienced a 23% decline from its all-time high, a correction that mirrors the drawdown seen in April 2025, as reported by CryptoQuant. This ongoing price drop is approaching previous significant corrections of -26% and -28% that occurred in September 2024 and May 2025, respectively.
The current correction is impacting the market more severely than previous ones, with Bitcoin's supply in profit decreasing to 69.5%. This is the lowest level observed since October 2023, indicating that short-term holders are facing one of the most challenging periods of the current market cycle.
Liquidations Surge and Negative Coinbase Premium
Data from Coinglass indicates that over $2.3 billion in long positions have been liquidated in the past week. While this figure is lower than the $16 billion spike recorded in October, the ongoing trend points to sustained trader exhaustion in the market.
Further contributing to bearish sentiment, Bitcoin's Coinbase premium index has remained negative. This signals persistent selling pressure from investors in the United States and suggests a lack of institutional buy support, which adds weight to the recent market correction.
Additionally, CryptoQuant highlights a sharp negative change in Bitcoin's 90-day supply in profit, further underscoring signs of cyclical stress. Bitcoin's price decline to approximately $95,000 reinforces the deterioration of market sentiment, especially in the absence of strong recovery signals.
Altcoins, which were already under pressure, are now showing signs of mass capitulation. Bitcoin has entered a critical technical territory. Analysts recommend close monitoring of the market over the coming weeks as key thresholds are tested across various metrics.