Altcoin Momentum Builds as Market Fragility Rises: Bitfinex Alpha

Key Points

1. Ethereum's open interest dominance has risen from 17% to 26%, reflecting renewed interest amid improving narratives and exchange listings.

2. Traders are increasingly looking beyond Bitcoin to capture gains in Ethereum and other volatile altcoins, which can amplify liquidation risks.

3. The market saw $1.46 billion in long liquidations recently, with Bitcoin accounting for $370 million and altcoin traders facing significant losses.

4. Bitfinex analysts warn that the market has become overcrowded on the long side, with over $350 million in liquidations across long and short positions in the last four weeks.

5. Continued use of leverage in altcoin trading could lead to more aggressive liquidation trends, especially if momentum stalls or unexpected macro/regulatory news emerges.