- Altseason 3 marks a strong start, pushing altcoin market cap above $2.1 trillion.
- Altcoin leverage is 50% higher than Bitcoin’s, signaling elevated risk despite strong momentum.
- Rising Bitcoin price and open interest hint at a 2-3 month bullish run, boosted by key economic factors.
After two mini altseasons, the crypto world is ready for Altseason 3. This phase could see altcoins soar, potentially doubling their market cap and driving fresh excitement among investors.
The Next Big Move for Altcoins
The past crypto cycle was full of smaller altseasons where altcoins outperformed Bitcoin. Now, Altseason 3 appears to be starting, and it could be the biggest yet.
Looking at the altcoin market cap (excluding Bitcoin and Ethereum), it’s currently around $1.08 trillion. The charts show a clear uptrend, with projections pushing above $2.1 trillion. Each Altseason usually kicks off after a period of calm or slight pullbacks, creating a solid base before prices surge.
This cycle is different because the market is growing stronger and more mature. Investor interest is rising, and the momentum behind altcoins is building up fast. If history repeats itself, Altseason 3 could be a major boost for altcoins.
Leverage Is High
Even with the good news, there’s a caution sign. Right now, traders are much more leveraged on altcoins than on Bitcoin. Leveraged positions on altcoins are about 50% higher, while altcoin market cap is still 40% lower than Bitcoin’s dominance.
This gap is risky. It happened before in December 2024, and altcoins crashed hard. Most of the rally is driven by perpetual futures, which are known for quick moves and sudden drops.
So, while the market looks bullish, it’s smart to stay alert. Too much leverage can turn a rally into a rapid correction.
Strong Bitcoin and Macro Factors Support Rally
Bitcoin is holding strong around $113,677. Open interest in Bitcoin futures is also rising, with about $40.8 billion locked in. This shows more traders are betting on Bitcoin’s price going up.
Beyond Bitcoin, the total open interest across all crypto derivatives is near $107.3 billion. This signals excitement and active trading across the crypto market.
On top of this, big economic factors are lining up. Fed rate cuts, quiet Treasury bond buying, growing digital asset reserves, and expected ETF approvals are all pushing the market higher.
Together, these factors set the stage for a strong 2 to 3 month uptrend.
