Altcoin Futures Open Interest Hits $61.7 Billion Peak

The cryptocurrency market is experiencing heightened speculative activity, particularly in altcoins, as evidenced by the surge in futures open interest, which recently hit an all-time high of $61.7 billion. XRP has seen its open interest surpass $3 billion, signaling potential volatility with traders divided on whether the asset will experience a bullish breakout or a correction. Despite Bitcoin’s dominance remaining strong, analysts highlight that a broad altcoin rally may hinge on regulatory approval of new exchange-traded funds (ETFs) that would allow institutional investors to gain exposure to altcoins beyond Bitcoin and Ethereum. Ethereum investors are currently taking profits after its price nearly doubled, with mixed market signals suggesting either a short-term correction or a possible local short squeeze. Meanwhile, technical indicators suggest bearish trends for some altcoins like Stellar, while others like BNB and XRP are at critical support levels that could determine their near-term trajectories. Overall, the influx of leverage into altcoins is increasing market sensitivity and risk, underscoring the importance of ETF approvals and macroeconomic conditions for future price movements.