Altcoins Gain $4 Billion Despite Bitcoin Selloff, Analyst Sees Bullish Shift

The analyst noted an unusual pattern in which altcoins stopped reacting to BTC weakness, calling the market exhaustion and likely a turning point.

On June 2, 2026, as Bitcoin (BTC) fell below $70,000, the total market cap of altcoins actually increased by $4 billion, according to crypto analyst Sykodelic.

This unusual divergence suggests that there could be a potential breaking point where smaller tokens could stop bleeding in response to BTC weakness, a trend that has been seen in the past just before a broader market rally.

Altcoins hold strong as Bitcoin falters

Bitcoin’s price action only got worse over the past 24 hours, when, after failing to hold above $73,000, it fell to an intraday low near $72,500 before slipping further below $68,000 on Tuesday, marking a daily decline of almost 6%.

The OG crypto is now down nearly 11% for the week, according to CoinGecko, and is at risk of falling back towards $65,000. Despite BTC’s poor form, altcoins tell a different story.

“What we are seeing here is an exhausted market in which alts are no longer reacting to weakness,” Sykodelic wrote on X. “Bitcoin is actually weaker than OTHERS.”

The analyst also noted that the altcoin’s total market capitalization increased by $4 billion that day, while Bitcoin’s dominance fell by 1%. As CryptoPotato reported yesterday, some tokens generated significant gains, including Humanity (H), which rose by around 81%, LAB, which gained over 52%, and Worldcoin (WLD), which added another 13% to its price and was trading at around $0.43 at the time of writing.

In his analysis, Sykodelic also highlighted that the Business Cycle Index sits at 54.0, a level historically associated with expansion, and noted that the OTHERS.D chart closed above its 200-day simple moving average.

He added that every time OTHERS.D reclaimed the 200 SMA, it jumped at least 250%, which could offer a glimmer of hope for traders, given that the current setup, according to the market observer, is quite similar to other past lows that preceded the altcoin’s parabolic moves.

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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 stock markets, which have soared to record highs while the royal cryptocurrency has faltered, suggesting that most of crypto’s liquidity is flowing into stock markets.

But fellow market watcher CrediBULL Crypto dismissed those suggestions, pointing out that the total market capitalization of all tokens outside of the top 10 coins is less than $200 billion, or about “1/350th of the S&P 500.”

He said there was virtually no liquidity flowing out of crypto, but there were hundreds of billions of dollars in traditional markets that could potentially flow into BTC and alts.