Analyst Matthew Hyland flags potential altcoin bull run as key metrics break year-long downtrends, though rising leverage poses correction risks.
Macro & Markets ·
Analyst Matthew Hyland has flagged what he views as a potential inflection point in the altcoin market, after key technical indicators—including ETH, Total 2, Total 3, and OTHERS—moved above year-long resistance levels. The OTHERS index, which excludes the top 10 cryptocurrencies and focuses on smaller tokens, has drawn particular attention; when compared to S&P 500 dominance on a ratio chart, it sits near historical lows while its oscillator has entered oversold territory, a setup Hyland compares to the overbought readings seen in 2017. He has suggested this could signal the beginning of an outsized altcoin cycle, potentially exceeding the 2020–2021 rally.
The altcoin market outside the top 10 has reached a combined market capitalization of $213 billion, reflecting gains of nearly 12 percent since September began. Notable movers include Zcash, which climbed 370 percent from its early-June low to surpass $1,200, while Dogecoin rose 12 percent from its Friday low to $0.094 and BNB approached $780. Trading activity has intensified as well; perpetual futures open interest in altcoins has exceeded Bitcoin's for the first time since December 2024.
Yet mounting leverage presents an offsetting risk. Zcash perpetual futures open interest reached $2.7 billion, and the token's move above $1,200 triggered $24 million in liquidations over 24 hours, with the majority being short positions. Historically, such rapid shifts in derivatives positioning have preceded corrections in mid-cap tokens, leaving the setup dependent on whether momentum can sustain without a sharp drawdown.