Bitcoin’s Spot-Backed Rally Hides an Altcoin Leverage Trap Last Seen in 2025

Altcoin perpetual futures carried more open interest than Bitcoin’s on September 6, the first such flip since December 2024, according to Coinalyze data. That crossover comes even as Bitcoin’s own rally stays anchored in spot demand, not altcoin leverage.

Neoclassic Capital Co-Founder and Managing Partner Michael Bucella called Bitcoin’s advance a healthy rotation. He said the initial surge came from short covering. Spot demand and rising call-option skew have since taken over as futures positioning eased.

Altcoin Leverage Nears Levels Last Seen Before 2025’s Crash

Zcash drove most of the shift. ZEC’s derivatives book swelled to an all-time high near $2.4 billion during Zcash’s decade-high rally. Short sellers absorbed roughly $34 million in forced closures as the token broke higher.

Zcash’s rally has drawn extra attention as Grayscale files to convert its ZEC trust into a spot ETF. That filing adds a new demand angle even as leverage climbs.

Zcash is up almost 150% in a month. Image Source: CoinGecko

Ether and tokens tied to Robinhood’s new blockchain have also outperformed. Pons, a memecoin launchpad built on that same chain, has fueled a fresh wave of token launches. Traders are rotating leverage further down the risk stack as Bitcoin’s rally matures.

Proceed to Altcoins with Caution

Bucella told CNBC’s Halftime Report the buildup echoes conditions from October 2025. That was just before a sharp market-wide liquidation. He argued Bitcoin’s own move looks comparatively healthy. It is driven by spot buying rather than pure short covering.

“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-backed bid has held up despite a brief late-August outflow streak, per BeInCrypto’s September warning signs. Whether altcoin leverage unwinds as calmly is the open question for the rest of September.

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