Altcoins have joined the rally. Over the past week, 72.5% of the tracked altcoins outperformed Bitcoin. During the August squeeze, the highest share was 39%.
Traders have not added much leverage. Open interest in altcoin perpetual futures, measured in coins, has barely grown over 30 days, and fewer than half of the markets added positions. In the overheated periods of February 2021 and December 2024, the same measure rose sharply, with most markets adding.
The altcoin rally is driven mostly by spot buying, which makes a sudden wave of forced selling less likely. A broad jump in open interest would be a sign that the move is starting to overheat.
#dyor #NFA✅
Traders have not added much leverage. Open interest in altcoin perpetual futures, measured in coins, has barely grown over 30 days, and fewer than half of the markets added positions. In the overheated periods of February 2021 and December 2024, the same measure rose sharply, with most markets adding.
The altcoin rally is driven mostly by spot buying, which makes a sudden wave of forced selling less likely. A broad jump in open interest would be a sign that the move is starting to overheat.
#dyor #NFA✅
