The altcoin sector suffered “one of its biggest devaluations on record” amid the recent crypto market downtick, according to the digital asset analytics firm Glassnode.
Glassnode notes in a new analysis that altcoins experienced significant sell-side pressure in recent weeks as Bitcoin (BTC) outperformed every altcoin subsector.
“We can evaluate the magnitude of the drawdown by assessing the 14-day change in the global altcoin market cap. Over the last fortnight, the altcoin market cap declined by $234B, with a small handful of events days recording a larger absolute drawdown.
The severity of this drawdown underscores the scale of the capitulation event and can be reasonably considered to be an event within a bear market within the altcoin sector.
This is quite interesting as Bitcoin does not appear to display the same relative weakness, suggesting a divergence is opening up between BTC and the rest of the digital asset landscape.”
Bitcoin is trading at $96,933 at time of writing. The top-ranked crypto asset by market cap is up nearly 2% in the past 24 hours.
Bitcoin dominance (BTC.D) currently stands at 61.18% and is up more than 5.5% in the past month, according to data from TradingView. Traders use BTC.D to track whether altcoins are underperforming or outperforming Bitcoin as the metric calculates how much of the crypto market cap belongs to BTC.
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