Open interest in altcoin perpetual futures moved above bitcoin's this weekend, the first such flip since December 2024. Zcash led the charge with a record $2.4 billion in open interest and a run past $1,000 that has pushed several short sellers toward liquidation, while a fear and greed index reading of 71 and bitcoin's 59% dominance leave the flip fragile if funding turns.
Altcoin perpetual open interest surpassed bitcoin's this weekend, the first time the two lines have crossed since December 2024. Traders are using leverage to chase smaller, faster-moving altcoin markets rather than bitcoin itself.
The market cap of altcoins outside the top 10 has climbed above $200 billion, up more than 10% since the start of September. Total crypto market cap sits near $2.70 trillion, with bitcoin holding 59.2% of it and ether 11.3%. Meanwhile, the crypto fear and greed index reads 71, down two points from a day earlier. Bitcoin trades near $79,500, having stalled under an $80,000 to $82,000 resistance band after a Sept. 3 high of $82,239.
Zcash Carries the Leverage
Zcash accounts for most of the shift. Open interest in ZEC hit a record $2.4 billion in early September, and roughly $34 million of shorts were liquidated when the price crossed $1,000 on Sept. 4. ZEC now trades near $1,200, up 134% in 30 days, with a market cap of $20 billion.
The largest ZEC short on Hyperliquid is $25.7 million underwater from a $444 entry, held by trader Garrett Jin. A second trader who had won 26 trades in a row is down $5.27 million on an $18.95 million short and faces liquidation at $1,317.
Why the Last Flip Mattered
The December 2024 crossover was followed by sharp corrections in several mid-cap tokens while bitcoin held relatively steady. Altcoin perps sit on thin order books, so a crowded long that unwinds forces selling that spot markets cannot absorb, which is why altcoin drawdowns can run deeper than bitcoin's in the same week. A Bitcoin.com News explainer on liquidation cascades described one episode where $19 billion vanished the same way.
Three things could break the current cycle: a funding-rate spike that makes carrying longs expensive, a bitcoin price move large enough to force cross-margined accounts to de-risk their altcoin legs, or the continued absence of retail traders. A report from late last month also noted Google search interest in "altcoin" at 26 out of 100, with the Altcoin Season Index at 43, short of the 75 that defines an altseason.
Source: Bitcoin.com News
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