Main to remember
Altcoin Open Interest reached $ 61.7 billion while the Altcoin season index reached 61 – its first test since the beginning of 2025. However, discoloration of rotation flows has raised doubts as to this escape or not a lasting altitude.
In less than 72 hours, the crypto market has lost nearly $ 20 billion, Bitcoin (BTC) losing about $ 10 billion alone and showing that this cycle is still very “led by BTC”.
Supporting this, the Bitcoin dominance (BTC.D) slipped at the bottom of several months to 57%, while the total 2 (ex-BTC) fell in tandem. Overall, rotation flows have remained flat, strengthening a risk market.
Altcoin oi increases despite the thunderous flows
In this context, Altcoin Futures Open Interest (OI) exploded + $ 9.2 billion on Friday August 22, which made the total of the OI (red line) at a new summit of $ 61.7 billion. This highlighted the increase in leverage in the alts, despite the short -term rib.
Source: Glassnode
As a rule, OI points tend to follow the action of Bitcoin prices.
However, the Top Altcoin Oi (Beige Bars) increased from $ 20 billion in March to $ 60 billion by the end of August, adding almost $ 40 billion, outperforming the growth of $ 30 billion BTC during the same period.
In simple terms, the Altcoin market could be overheated. Could traders be before a season in Alts-season, but with mute rotation flows, could that feed a volatility loop instead?
The Altcoin index bursts, but history encourages caution
A lever raised through the alts has amplified the decline.
In support, the Top Altcoin Ethereum (ETH) experienced a drop of almost 4% of the OC in the last 24 hours, lining up with its price drop by 3%. Everything while Bitcoin contained its drop to 2.68%.
That said, the best altcoins have endured deeper blows, initially triggered by the correction of the BTC, but agrees because the lever effect was eliminated.
This led to the Altcoin season index at 56 from 61 just a day before.
Source: Blockchaincenter
History offers a warning
A configuration similar to the end of January-perme, February, capped the Alts-season.
The index reached 61, but the monthly decrease of 18% BTC pushed it to 20 at the end of the first quarter. Ethereum fell even stronger, reaching a lower monthly $ 1,440 and other altcoins followed suit.
For the moment, the market shows signs of stress: altcoins remain vulnerable, the lever effect becomes rinsed and any rebound can be short-lived unless that the rotation flows reproduce, upgrading the Alts-season again.
