On June 2, 2026, as Bitcoin (BTC) tumbled below $70,000, the total market capitalization of altcoins actually rose by $4 billion, according to crypto analyst Sykodelic.
That unusual divergence suggests that there could be a potential breaking point where smaller tokens may stop bleeding in response to BTC’s weakness, a pattern that in the past was seen right before there were broader market recoveries.
Altcoins Hold Ground as Bitcoin Falters
Bitcoin’s price action only got worse over the past 24 hours, when, after failing to hold above $73,000, it dropped to an intraday low near $72,500 before sliding further to under $68,000 on Tuesday, marking a nearly 6% daily decline.
The OG crypto is now down almost 11% for the week, according to CoinGecko, and risks falling back toward $65,000. Despite BTC’s poor form, altcoins told a different story.
“What we are observing here is an exhausted market in which alts are no longer responding to weakness,” wrote Sykodelic on X. “Bitcoin is actually being weaker than OTHERS.”
The analyst also noted that the total altcoin market cap went up by $4 billion on the day, while Bitcoin’s dominance dropped by 1%. As CryptoPotato reported yesterday, some tokens delivered sharp gains, including Humanity (H), which pumped by roughly 81%, LAB, which gained more than 52%, and Worldcoin (WLD), which added another 13% to its price and was trading at around $0.43 at the time of writing.
In their analysis, Sykodelic also pointed to the business cycle index sitting at 54.0, a level that is historically associated with expansion, and noted that the OTHERS.D chart had closed above its 200-day simple moving average.
He added that every time OTHERS.D reclaimed the 200 SMA, it jumped by at least 250%, which could offer traders a ray of hope, considering that the current setup, according to the market watcher, is quite similar to other bottoms in the past that preceded parabolic altcoin moves.
Liquidity Debate and Market Outlook
The current state of the market may temper Sykodelic’s optimism, with analysts comparing BTC’s performance to that of traditional equity markets, which have been soaring and hitting record highs while the king cryptocurrency faltered, leading to suggestions that most of crypto’s liquidity is flowing into stock markets.
But fellow market watcher CrediBULL Crypto has dismissed such suggestions, pointing out that the total market capitalization of all tokens outside the top 10 coins is less than $200 billion, which is roughly “1/350th of the S&P 500.”
He said there is hardly any liquidity flowing out of crypto, but there are hundreds of trillions of dollars in traditional markets that could potentially flow into BTC and alts.
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