Altcoin Leverage Surpasses Bitcoin's as Market Warns of Potential Trap
A recent data analysis from Coinalyze shows that altcoin perpetual futures have surpassed Bitcoin's in open interest for the first time since December 2024. This crossover occurs despite Bitcoin's rally being driven by spot demand rather than altcoin leverage.
Necoclassic Capital Co-Founder and Managing Partner Michael Bucella views Bitcoin's advance as a 'healthy rotation.' He notes that initial gains came from short covering, but are now sustained by rising call-option skew and easing futures positioning.
The surge in altcoin leverage is particularly notable with Zcash leading the charge. Its derivatives book has reached an all-time high of nearly $2.4 billion as it hit a decade-high price. As a result, short sellers have absorbed around $34 million in forced closures.