Bitcoin Touched $70K, But Altcoins Stole the Show

Bitcoin flirted with $70,000 on Wednesday, but the real party was happening elsewhere. While the world's largest cryptocurrency managed a respectable 4.3% gain, altcoins were having a field day: Ethereum up 8.5%, Solana jumping 6.9%, and Cardano surging 10.8%.

For crypto veterans, this kind of divergence tells a story.

The $70K Rejection That Wasn't Quite

Bitcoin came tantalizingly close to reclaiming the $70,000 psychological barrier before retreating to around $68,300 by Thursday morning. The 5% swing from session high to overnight low of $67,700 marked the strongest attempt to break above $70K since the February 5 crash.

But here's what made Wednesday different: Bitcoin's gain was actually the smallest among the top 10 cryptocurrencies. Even Dogecoin outperformed it with an 8.3% jump.

"The wave of forced selling is starting to clear out," said Daniel Reis-Faria, CEO of ZeroStack. "Altcoins are outperforming again, and more of them are ahead of bitcoin. That tells me we're seeing a rotation."

Risk Appetite Returns to Crypto's Wild West

When altcoins outpace Bitcoin, it typically signals one thing: traders are ready to chase higher-beta moves again. It's crypto's version of investors moving from blue chips to growth stocks.

The timing is telling. This rotation comes as the broader market showed a muted reaction to Nvidia's quarterly earnings. Despite beating estimates, the AI giant's shares erased most post-earnings gains, rising just 0.2% in extended trading. The world's most valuable company even signaled concerns about an overheated AI economy.

The Macro Headwinds Haven't Disappeared

Before crypto bulls get too excited, the bigger picture remains murky. Market maker Wintermute noted that cryptocurrencies have been losing ground alongside tech stocks as capital rotates into defensive and tangible assets.

Crypto finance platform Matrixport flagged stagnation in stablecoin supply as a "significant obstacle" for Bitcoin. Meanwhile, onchain data firm Glassnode expects broader liquidity to recover in six months at the earliest.

The near-term risks are stark. While Cryptoquant data shows selling pressure has slowed on Binance — supporting the case for a short-term bounce — crypto exchange Bitrue warned that a break below $60,000 could trigger a cascade toward $50,000-$55,000 or even $47,000.

The Gap Between Hope and Reality

Wednesday's action highlighted crypto's eternal paradox: altcoins are leading the charge just as Bitcoin failed to break a key resistance level. It's like watching the supporting cast steal the show while the lead actor stumbles on stage.

Cryptoquant data suggests the worst of the forced selling may be over, but the medium-term outlook remains clouded by fragile macro conditions and stagnant stablecoin supply.