Crypto Market Cap Reclaims $3 Trillion After Eight Months as Leverage Warning Builds

Forecast Trend Report by Period

Bitcoin's sharp rally has lifted the total cryptocurrency market capitalization back above $3 trillion for the first time in about eight months. Leverage in derivatives markets has also risen rapidly, prompting concern that short-term volatility could intensify.

Bloomberg reported on September 22 that Bitcoin jumped nearly 8% in a single day on September 21, climbing above $87,300. It was the highest level since January. The advance also wiped out $920 million of short positions in the derivatives market that day.

The surge in Bitcoin helped push the overall crypto market's value past $3 trillion. It was also the first time since January that total cryptocurrency market capitalization had topped that threshold.

The rally has been accompanied by a steep increase in derivatives positioning. According to CoinGlass, open interest in the crypto perpetual futures market recently climbed to $160 billion, the highest level since late October last year.