Key Insights:
- The aggregate crypto market capitalization has successfully crossed the $3 trillion threshold, backed by a robust expansion in trading volumes.
- According to Santiment, FOMO surrounding Bitcoin has climbed to its peak level since 2024.
- Amid widespread market euphoria, Bitcoin open interest has reached $25.84 billion.
The cryptocurrency market advanced its September recovery on September 22 as total valuation climbed back over $3 trillion, accompanied by accelerating trading activity spanning Bitcoin and leading altcoins.
CoinGecko reported that the global cryptocurrency market capitalization hovered near $3.02 trillion, while Bitcoin changed hands at approximately $86,000, commanding roughly 57% of the overall market share.
Santiment observed that this recovery generated the highest combined weekly trading volume for Bitcoin and major altcoins since the initial week of March. Concurrently, social sentiment and derivatives leverage experienced sharp increases, driving both heightened participation and elevated risks of liquidation.
Crypto Market Rally: Trading Volume Reaches Highest Since March 2026
Blockchain analytics provider Santiment reported that crypto trading activity has escalated in tandem with asset prices. Major altcoins including ETH, XRP, SOL, and DOGE, alongside Bitcoin, posted their largest combined weekly trading volume since the opening week of March.
Analysts at Santiment noted that this dramatic surge in volume points to renewed engagement within the market. They further explained that traders are increasingly focusing on breakout opportunities, shifting capital into altcoins, and re-establishing leveraged positions.
A short squeeze additionally fueled the upward movement, resulting in the liquidation of approximately $648 million worth of bearish crypto positions as Bitcoin neared the $85,000 mark. Furthermore, macroeconomic tailwinds provided support for BTC prices, as declining oil prices and softening Treasury yields bolstered risk appetite across financial markets.
Bitcoin FOMO Levels Reach Two-Year Highs
Researchers at Santiment also highlighted that Bitcoin-centric FOMO has attained its highest point since 2024. In addition, bullish commentary and projections across the crypto ecosystem have multiplied as the price of BTC advances toward $87,000.
The firm indicated that this price action was bolstered by a short squeeze that liquidated roughly $648 million in bearish cryptocurrency positions over a 24-hour window. Total crypto trading volume also expanded by 39%, with forced buying serving as a catalyst for the price advancement.
Nevertheless, the researchers advised investors to exercise caution regarding new positions in light of the one-sided optimism. They pointed out that the prevailing risk-reward profile is not as attractive as it was the prior week when market participants were experiencing fear.
Bitcoin Open Interest Hits $25 Billion in This Crypto Market Rally
On-chain metrics demonstrate that open interest is climbing alongside asset values as traders amplify their exposure to crypto derivatives. Data from Sanbase indicates $25.84 billion in Bitcoin open interest, complemented by $16.97 billion for Ethereum and $2.97 billion for Solana. Overall, market-wide open interest grew by 7.6% during the most recent rally, which followed a substantial wave of short liquidations.
Ethereum emerged as a standout performer, with open interest climbing past $17 billion on Tuesday for the first time since January. Santiment pointed out that while rising open interest does not independently dictate market direction, concurrent price increases signal expanding participation and leverage.
The firm explained that elevated open interest could sustain upward momentum provided spot buying stays robust. Conversely, if prices stall while leverage continues to accumulate, these heavy positions could heighten liquidation risks.
This article is for informational purposes only and does not constitute financial or investment advice. Crypto derivatives use leverage and can result in substantial losses.