Key Market Insights
- •Altcoin profits have stabilized at 5%, indicating a significant market event and divergence from Bitcoin's performance.
- •Bitcoin's profit realization has begun a sharp decline, signaling potential shifts in market sentiment.
- •Thin liquidity in the altcoin market continues to affect overall stability and recovery prospects.
Altcoin Market Analysis
Glassnode's on-chain data, as of November 16, 2025, reveals that only approximately 5% of the altcoin supply is currently profitable. This marks a significant market event and highlights a notable divergence from Bitcoin's current market trajectory. This rare divergence could profoundly impact investor strategies, with Bitcoin experiencing declining profits while altcoins stabilize in deep capitulation zones, suggesting a cautious overall market sentiment.
Glassnode's latest data indicates that altcoin profits have stabilized at approximately 5%, a level considered to be deep capitulation territory. This situation stands in stark contrast to Bitcoin's different market trajectory, where profits are beginning to experience a significant decline. Rafael Schultze-Kraft, Co-founder & CTO of Glassnode, stated:
"Glassnode stated that the relative profit realization of altcoins has dropped to the deep surrender zone, with only about 5% of the altcoin supply in profit, while the profit ratio of Bitcoin has just begun to decline sharply. This unusual divergence between Bitcoin and altcoins is unprecedented in previous cycles."
Leading the analysis, Glassnode, co-founded by experts Rafael Schultze-Kraft and Jan Happel, emphasizes the ongoing market dynamics. Their extensive blockchain analytics reveal a clear shift as Bitcoin shows declining profits, while altcoins stabilize at historically low levels.
Investor Impact and Market Stability
The impact on investors is pronounced, with altcoin markets experiencing substantial stress. Bitcoin's market is under pressure but receives some localized support. Altcoin holders face continued financial strain as profitability hovers at minimal levels.
Financial implications across cryptocurrency markets include subdued speculation in Bitcoin, with ETFs showing outflows. Altcoin markets see a scarcity of liquidity, presenting challenges for a financial recovery as profitability remains critically low.
Divergence Patterns and Future Trends
Experts note unusual divergence patterns as Bitcoin undergoes renewed pressure while altcoins show minimal fluctuations. This unique scenario reflects an atypical break from past bear market cycles.
Historical trends, coupled with expert analysis, predict continued challenges in the altcoin sector. Technological outcomes remain uncertain with areas like Ethereum maintaining some stability due to staking inflows, while altcoin liquidity issues persist.