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Forecast Trend Report by Period
Open interest in altcoin perpetual futures has surpassed Bitcoin‘s for the first time since December 2024, pointing to a rapid influx of leveraged money into the altcoin market. The shift is also sharpening focus on the risk of large-scale liquidations.
Coinalyze data cited by Crypto Briefing on Sept. 6 showed total open interest in altcoin perpetual futures moved above Bitcoin open interest for the first time since December 2024. Open interest refers to the total value of derivatives contracts that have not yet been closed or settled.
Altcoins are also gaining strength in the spot market. The combined market capitalization of altcoins outside the top 10 has exceeded $200 billion and has risen more than 10% this month. Bitcoin, by comparison, has traded above $80,000 over the same period.
Leverage was particularly concentrated in Zcash. Open interest in ZEC climbed to a record $2.4 billion earlier this month. As the token’s price rose past $1,000, about $34 million of short positions were liquidated.
Still, the rapid buildup of leverage in the altcoin futures market is raising the prospect of greater volatility. One analysis found that when total open interest approaches about 4.42% of the crypto market’s total capitalization, cascading liquidations tied to price swings tend to accelerate.
The last time altcoin open interest surpassed Bitcoin, in December 2024, some mid-cap altcoins later underwent sharp corrections. This time, however, altcoin spot market capitalization is also rising alongside derivatives activity, making it a key market variable whether the ratio of open interest to market capitalization continues to climb.
#Crypto Derivatives
#On-chain Data
#Altcoin
BTC
ZEC
Source: en.bloomingbit.io