The crypto market extended its September recovery on Sept. 22 as total capitalization moved back above $3 trillion, with trading activity accelerating across Bitcoin and major altcoins.

Data from CoinGecko showed global cryptocurrency market capitalization near $3.02 trillion, while Bitcoin traded around $86,000 and represented roughly 57% of the total market, a dominance level that leaves altcoins accounting for the remainder of the market's value. Blockchain analytics platform Santiment said the rebound produced the strongest combined weekly trading volume for Bitcoin and major altcoins since the opening week of March. At the same time, social sentiment and derivatives leverage rose sharply, creating stronger participation and greater liquidation risk in parallel.

Trading Volume Reaches Highest Level Since March 2026

Santiment crypto trading activity has surged alongside prices, with Bitcoin and major altcoins such as ETH, XRP, SOL, and DOGE recording their strongest combined weekly trading volume since the opening week of March. The firm shared the figures in a post on X.

Analysts at Santiment reported that the sharp increase in volume indicates renewed market participation. They added that traders are showing greater interest in breakouts, rotating into altcoins, and reopening leveraged positions.

A short squeeze — a rapid price advance that forces leveraged bearish traders to buy back assets to close their positions — also contributed to the move, with roughly $648 million in bearish crypto positions liquidated as Bitcoin's price approached $85,000. Macro factors added to the upside as well, with falling oil prices and easing Treasury yields supporting risk appetite across broader markets.

Bitcoin FOMO Reaches Two-Year High

Santiment researchers also noted that Bitcoin-related FOMO has reached its highest level since 2024, while bullish calls and commentary across the crypto market have surged further as BTC's price approaches $87,000. FOMO (fear of missing out) describes sentiment-driven buying interest that analysts track as a gauge of crowd positioning.

The firm said the move was supported by the short squeeze that liquidated roughly $648 million in bearish crypto positions over 24 hours. Total crypto trading volume also increased 39%, with forced buying contributing to the price advance.

The researchers cautioned, however, that investors should be careful about opening new positions amid one-sided optimism. They noted that the risk-reward is not as favorable as it was last week, when investors were fearful.

Bitcoin Open Interest Hits $25.84 Billion

On-chain data shows open interest rising alongside prices as traders increase their exposure to crypto derivatives. Open interest measures the total value of outstanding derivatives contracts, offering a gauge of how much capital is committed to leveraged positions. Sanbase data shows $25.84 billion in Bitcoin open interest, $16.97 billion in Ethereum, and $2.97 billion in Solana. Santiment shared the figures in a post on X.

Open interest across the crypto market also increased 7.6% during the latest rally, following a major wave of short liquidations. Ethereum has been the standout, with open interest surpassing $17 billion on Tuesday for the first time since January.

Santiment noted that rising open interest does not indicate market direction on its own. However, rising crypto prices alongside it indicate greater participation and leverage. The firm said higher open interest could support further momentum if spot buying remains strong, but if prices stall while leverage continues to build, the elevated positions could increase liquidation risk. How spot demand evolves relative to this leveraged build-up is the key condition to monitor in the sessions ahead, according to the firm's outlook.

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.