Bitcoin Rally Masks Altcoin Leverage Peril Not Seen Since 2025

Coinalyze data indicate that altcoin perpetual futures held more open interest than bitcoin's on September 6, the first time that has happened since December 2024. The shift is occurring even as bitcoin's rally remains supported by spot demand rather than by altcoin leverage.

Michael Bucella, co-founder and managing partner of Neoclassic Capital, described the run-up in bitcoin as a healthy rotation. The first jump, he said, was driven by the covering of short positions. As futures positioning has cooled, spot purchases and a growing call-option skew have now become the main drivers.

Altcoin Leverage Approaches Levels Last Seen Prior to the 2025 Collapse

Zcash was the primary force behind the change. In the course of Zcash’s decade-high rally, ZEC's derivatives ledger expanded to an all-time high of almost $2.4 billion. Shorts took on about $34 million in forced liquidations as the cryptocurrency pushed upward.

Zcash's climb has gained additional notice now that Grayscale has applied to convert its ZEC trust to a spot ETF. That application creates a fresh source of demand at a time when leverage is still rising.

Also outperforming are ether and tokens linked to Robinhood's newly launched blockchain. The memecoin launchpad Pons, which is built on that chain, has ignited a fresh batch of token launches. As bitcoin's advance grows older, traders are shifting leverage even further down the risk ladder.

Approach Altcoins with Caution

Speaking on CNBC's Halftime Report, Bucella said the current buildup looks like what was seen in October 2025. That period came right before a sharp liquidation across the market. In his view, bitcoin's own trajectory seems healthier by comparison. The push comes from spot purchases rather than short-covering alone.

“I’m not saying that this move isn’t sustainable. I’m just saying you should proceed with a lot of caution.”
— Michael Bucella, CNBC

Bitcoin's ETF-driven demand has remained firm through a short run of outflows in late August, according to BeInCrypto's September warning signs. The unresolved issue for the remainder of September is whether the unwinding of altcoin leverage will be just as orderly.