Bitcoin's Spot-Backed Rally Hides an Altcoin Leverage Trap Last Seen in 2025

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Bitcoin’s rally is being supported primarily by spot buying rather than broad-based speculative leverage, indicating stronger underlying demand for BTC. However, altcoins are showing elevated leverage and crowded positioning, recreating a vulnerability last seen in 2025. If volatility rises or Bitcoin momentum stalls, forced liquidations could trigger sharp altcoin declines and widen market weakness, even if Bitcoin remains comparatively resilient.

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