The encryption market is once again popular: Three key tests at present

Core Points

Large-cap cryptocurrencies have risen more than Bitcoin. Seven major tokens rose more than 3%. Short liquidation brings limited buying pressure. The volume of open contracts increases as the price of crypto assets rises. The "Altcoin Season" index is currently only 34.

Test 1: Is the increase spreading beyond Bitcoin?

The primary indicator is participation. Bitcoin's rebound becomes more credible when funds flow to several mature crypto sectors, rather than just focusing on Bitcoin (BTC). Data shows that in the past 24 hours, the total market value of the crypto market shown by CoinMarketCap has increased by 2.8%, and its CMC20 index has increased by 3.4%. Among the top 15 tokens, seven large market cap tokens rose more than 3%.

Large-scale market capitalization tokens with an increase of more than 3%

• Cardano (ADA)：+9.3%
• Zcash (ZEC)：+5.9%
• Dogecoin (DOGE)：+4.5%
• BNB：+3.9%
• Stellar (XLM)：+3.5%
• Chainlink (LINK)：+3.4%
• XRP: +3.3%

This list covers exchange infrastructure, payment networks, oracle services, meme assets, and Layer 1 public chains. This diversified performance makes more sense than a single bitcoin market because it shows that traders are willing to take risks in multiple parts of the market.

However, the meaning behind these increases varies. ADA was the strongest performer, with 24-hour trading volume growing by more than 46%, while ZEC was driven by narratives related to private assets and ETFs. These two factors should not be seen as pure measures of overall market appetize. At the same time, Solana rose 2.6%, indicating improved participation, but there was no indiscriminate blind buying behavior.

This broader upward trend comes against a backdrop of easing financial conditions. Reuters reported that remarks by Federal Reserve Governor Christopher Waller lowered expectations for a September interest rate hike, while the dollar weakened and government bond yields fell. According to Bitfinex analysts cited by CoinDesk, Bitcoin has also found buyer support near the average cost base of approximately $76,350 for active investors.

Test 2: Is leverage driving this market?

Short liquidations tend to make rallies look stronger because traders in the short market must buy covering positions when prices rise. Coinglass data shows that about $207 million of short liquidations have been made in the past 24 hours, accounting for about $282 million of the total liquidations.

This is enough to accelerate the development of the market, but not enough to explain the overall trend alone. Data showed that the volume of open interest was approximately US$415 billion, and the volume of derivatives trading reached US$748 billion. Although the liquidation amount cannot be directly compared to the open interest volume, its size suggests that this is not a mandatory market-wide buying event.

More important details are that open interest volume increased by 10.4%, and derivatives trading volume increased by 10.7%. As prices climb, traders are adding new exposure. This supports the current momentum to some extent, but also means that the market may become fragile if macro conditions reverse.

Test 3: Are funds being rotated to altcoins?

At the time of writing, CoinMarketCap's "Altcoin Season" index was reading close to 34. This 0 to 100 indicator tracks whether major altcoins have outperformed Bitcoin over a longer period of time; a reading of 34 indicates that there has been no widespread altcoin rotation.

Factors supporting the market

Several large market capitalization sectors rose simultaneously, with Bitcoin holding on to important buyer cost areas, and the US dollar weakening as interest rate hikes expectations cooled.

Factors that still need to be verified

The "Altcoin Season" index is still low, open interest volume is rising, and a single positive trading day cannot establish lasting demand across the market.

Conclusion

The next trading day will determine whether this is a meaningful return to risk appetite. If participation continues, Bitcoin maintains support, and leverage levels are controllable, the market's bullish sentiment will be more solid. If prices stagnate during the establishment of positions, then the wave will be seen as only a short-term return to risk appetite rather than the beginning of a larger market.

Prices, market cap changes, clearing data and derivatives data are real-time readings and may change after release.