Analytics firm Glassnode reported on September 18 that leverage levels in the altcoin market remain low. Data shows that open interest for altcoins is significantly below Bitcoin levels, which suggests a reduced risk of cascading liquidations during market pullbacks.
The altcoin market capitalization increased by approximately 21% in the month leading up to September 10. Despite this growth, Glassnode found no evidence of large-scale capital rotation from Bitcoin into riskier altcoin assets, a trend typically seen near cycle peaks.
Bitcoin continues to outperform altcoins, maintaining its market dominance. Analysts note that the current rally is driven primarily by Bitcoin, while altcoins follow its momentum rather than initiating independent speculative growth.
The ratio of altcoin open interest to Bitcoin remains far from the historical thresholds that usually signal aggressive leveraged betting. This divergence indicates that the market has not yet reached a point of high speculative risk.
