Altcoin Profits Stabilize in Deep Capitulation Territory

Glassnode’s on-chain data reveals only 5% of altcoin supply is profitable, marking a major market event and highlighting divergence from Bitcoin, as of November 16, 2025.

This rare divergence could impact investor strategies, with Bitcoin profit declines and altcoins stabilizing in deep capitulation zones, suggesting cautious market sentiment.

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Altcoin Market Analysis

Glassnode’s latest data shows that altcoin profits have stabilized at approximately 5%, marking a deep capitulation territory. This situation contrasts sharply with Bitcoin’s different market trajectory as profits begin 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  ETH -3.70% maintaining some stability due to staking inflows, while altcoin liquidity issues persist.