The cryptocurrency market witnessed a significant rotation of capital from Bitcoin into altcoins following a landmark U.S. Supreme Court ruling on tariffs. The Court ruled 6-3 that former President Trump's global tariffs were illegal, an event that most traders initially expected to trigger a market sell-off. Instead, capital flowed out of Bitcoin and into various altcoins, driving the total crypto market capitalization up 1.39% to $2.33 trillion.
BNB, DOGE, ADA, and SOL each gained between 3% and 4% in the last 24 hours while Bitcoin's price remained relatively stagnant. Bitcoin's dominance held steady at 58.27%, indicating that investors were not selling their Bitcoin holdings but were reallocating funds into altcoins perceived to have greater short-term upside potential. Blockchain advisor Anndy Lian commented on the dynamic, stating, "the outperformance we see today stems from internal momentum that traditional markets cannot replicate."
Adding to the bullish technical case for altcoins, crypto analyst Dan Gambardello highlighted a critical signal on the Others/BTC chart. The MACD indicator crossed above its signal line, forming two green histogram bars—a signal that preceded the major altcoin booms of 2017 and 2020. Gambardello noted this signal has historically coincided with the start of PMI (Purchasing Managers' Index) expansion and called it "the trigger for the bull for altcoins" in previous cycles. This is particularly relevant as quantitative tightening ended on December 1, 2025, and PMI expansion is anticipated to begin again soon.
Despite the price gains, market sentiment remains deeply fearful, with the Fear and Greed Index sitting at 14 (Extreme Fear). Lian suggested this disconnect "suggests that the market has already priced in significant pessimism, leaving room for upside surprises."
The total market cap is now testing a key technical resistance level at the 78.6% Fibonacci retracement of $2.35 trillion. A daily close above this level could signal a short-term trend reversal, while a rejection might push prices back toward the monthly low of $2.17 trillion.
Looking ahead, regulatory developments could provide further catalyst. The Clarity Act faces a White House-set deadline of March 1. Ripple CEO Brad Garlinghouse has expressed a 90% confidence level that the act will pass by the end of April, which could unlock institutional investment currently sidelined due to regulatory uncertainty.
In related price action, Bitcoin itself experienced volatility, briefly dropping $2,000 after President Trump responded to the Court's ruling by imposing an additional 10% global tariff. However, BTC quickly recovered to trade above $68,000, with a market cap exceeding $1.36 trillion. Among altcoins, Ethereum Classic (ETC) was a standout performer, skyrocketing 16% to $9.7. Other notable gainers included DOT, UNI, and NEAR, with the latter posting an 8% increase.
