Altcoin Trading Volume Surges to Four Times That of Bitcoin Amid Market Overheating Concerns
The altcoin market is exhibiting signs of overheating, with spot trading volumes now four times higher than that of Bitcoin. This surge in activity has also led to increased leverage across the market.
In response to these conditions, one prominent trader has opted to take profits and reduce their exposure to altcoins. The trader, known as Doctor Profit, reported selling ONDO with a 73% profit and closing a position in HBAR with a smaller gain. XRP remains under observation, with a potential entry point being eyed at a more favorable price. The trader expressed a lack of interest in acquiring more altcoins while market conditions remain so heated, describing them as a “great distraction and liquidity grab.”
“This is why I’m out of Alts!” Doctor Profit declared.
Instead, the trader is anticipating a correction in Bitcoin, a stance they have previously articulated. A short position was initiated at $86,200, with additional short orders placed between $86,500 and $89,500.
While maintaining an overall bullish outlook, Doctor Profit had previously indicated a potential pullback toward $79,000, near the 50-week moving average, before the broader uptrend resumes. The analyst had identified bearish signals across the Relative Strength Index (RSI), MACD/PPO, and Money Flow Index (MFI), while the Average Directional Index (ADX) suggested weakening trend strength.
Earlier this week, analyst Darkfost also highlighted several warning signs. According to Darkfost, Total2, a metric tracking the altcoin market capitalization excluding Ethereum, has seen inflows exceeding $371 billion since June 2026, representing a 45% increase in just a few months.
This shift is also evident on the Binance exchange, where 87% of listed altcoins are trading above their 200-day moving average. This marks a significant change from August, when 80% were trading below this key trend level. Darkfost interpreted this move as indicative of growing euphoria surrounding altcoins, a sentiment that has historically proven difficult to sustain over extended periods.
Another signal is the increase in altcoin deposits to exchanges. Weekly deposit transactions have surpassed 22,700 on Binance and 8,300 on Coinbase, with approximately 32,000 additional deposits across other platforms. While these numbers remain below the levels observed at the beginning of the previous bull cycle, Darkfost also pointed to a developing bearish divergence on Total2’s RSI, suggesting that altcoin momentum may begin to cool following the recent surge.
