The recent on-chain statistics signify huge sell-offs in the altcoin market. As per Glassnode, the price of Bitcoin ($BTC) has stayed near the starting position during the recent weeks irrespective of the huge volatility while altcoins saw broad-level sell-offs. The blockchain analytics platform discussed the recent performance of the Bitcoin and altcoin markets in a recent report.
#Bitcoin has remained near its starting position over recent weeks despite volatility, while altcoins have faced significant sell pressure. All #ERC20 sub-sectors have underperformed, reflecting broad-based weakness in adoption and market positioning: pic.twitter.com/DNnYc9yR2x
— glassnode (@glassnode) February 12, 2025
Bitcoin Stays Near Starting Point Over Several Weeks Despite Heightened Volatility
Glassnode’s data indicates that, despite Bitcoin’s trading within a broad range of $105,000 and $93,000, it eventually closed the week at approximately $98,000. Irrespective of this considerably flat price action, Bitcoin recorded substantial realized losses of up to $520M. Particularly, investors who purchased $BTC within the recent month carried out huge sell-offs. Hence, over the recent twenty-four hours, $68.5M was seen in realized losses. Hence, the short-term holders disproportionately incurred significant losses.
Altcoins, Particularly ERC-20 Tokens, Experience Wide-Scale Sell-Offs
On the other hand, in comparison with the mixed performance of Bitcoin, the altcoin landscape has markedly underperformed. Especially, the ERC-20 sub-sectors showed a considerable decline. In line with the Principal Component Analysis by Glassnode, majority of the ERC-20 tokens appear densely clustered. This signifies a wide-level sell-off, pointing toward a uniformity in decline.
Apart from that, this widespread plunge also highlights the growing investor reluctance and a huge downturn in market positioning. Thus, despite the notable dip in the Bitcoin market, the altcoin realm’s broader sell-offs suggest a relative shift in investor confidence.
Sheer Contrast Displays Shift in Investor Sentiment
According to Glassnode’s data, amid the sideways movement of Bitcoin, altcoins have gone through an enormous devaluation. Though Bitcoin’s heightened volatility resulted in massive capital erosion, the immense downturn in the altcoin market raises profound concerns. A possible reason behind this is the overvaluation or a shift in overall investor sentiment.
