Bitcoin Dips Below $70,000, But Select Altcoins Show Resilience

The crypto trend remains firmly in risk-off territory as Bitcoin slipped below $70,000 for the first time in eight weeks, but a few altcoins have defied this slump and notched double-digit gains.

NEAR Protocol is up 15% over 24 hours, according to CoinGecko data, while Worldcoin (WLD) and Internet Computer (ICP) and gains hover near 12% and 11% respectively.

Hyperliquid is trading near $73, down 0.7% on the day and around 3% from its record high of $75.46 formed on Tuesday. The token is up 125% in the past year, underscoring its explosive momentum.

This strong performance from select altcoins comes even as Bitcoin slipped below the key $70,000 psychological level to hit a local low of $69,034. It is down more than 4% over the past 24 hours, resulting in the liquidation of $728 million in leveraged positions, according to CoinGlass data.

“Geopolitics lit the fuse for a sharp risk-off move, triggering the ~$650M+ liquidation cascade on June 1,” Andri Fauzan Adziima, research lead at Bitrue Research Institute, told Decrypt. “ETF outflows amplified it, with spot Bitcoin products bleeding billions in recent weeks as institutions rotated or de-risked.”

Bitcoin and altcoin divergence

The divergence between Bitcoin and altcoins is driven by multiple factors.

Bitcoin is under pressure from headwinds including geopolitics, macroeconomics, and significant capital outflow from exchange-traded funds, experts told Decrypt.

According to Tim Sun, senior researcher at HashKey Group, Bitcoin’s decline is driven by U.S. Treasury yields, which have suppressed market risk appetite, and the booming AI market, which has created a liquidity siphon effect on crypto capital. “This has left the crypto market relatively weak due to a lack of new narratives and strong capital inflows,” Sun told Decrypt.

Strategy’s sale of 32 BTC has amplified this bearish sentiment and added to the existing headwinds.

Meanwhile, altcoin gains “seem to be independently driven by their respective ecosystems,” Sun said.

NEAR Protocol’s recent gains can be attributed to privacy and AI-related developments, Decrypt reported. Injective is also riding a similar AI wave, Adziima said. While Worldcoin gains can be attributed to “whale buying, derivatives interest, and adoption wins like live music ticketing via World ID,” he said.

Nearly 97% to 99% of Hyperliquid’s revenue is being fed back into token buybacks via the Assistance Fund, which has positively impacted the ecosystem and token holders. Even though the token’s price has been recording multiple record highs for the past week, the market cap only hit a new ATH on Tuesday, underscoring the deflationary effect of the burns. Finally, HYPE token’s popularity among institutions has grown considerably over the past month, and that is reflected in sustained inflows into HYPE ETFs.

In addition to the individual fundamental developments, there’s a “shared commonality,” according to Sun, who explained that “capital within the crypto industry is increasingly concentrating on assets with clear narratives, real cash flow growth, and healthy supply structures.”

“These aren't random pumps, they're conviction plays with real catalysts in a sea of beta,” Adziima said. “Capital is rotating hard into narratives with actual utility, yield, or tech edge, exactly what I'd expect in this phase.”

Looking ahead

With the exodus of capital from ETF products, worsening macroeconomic policy driven by the U.S.-Iran war and rising energy costs, the risk appetite for the crypto market remains virtually non-existent.

“Even if a rebound occurs, we believe a relatively weak, range-bound consolidation is the most probable scenario,” Sun said. A bear case scenario for the crypto markets would involve a potential correction in U.S. equities, which remain elevated, he noted, adding that, “These factors will all impact crypto assets, making it even harder for the crypto market to fully enter a phase of expanding risk appetite.”