Leveraged Optimism in 85% of Altcoins: Reaching Highest Levels Since Bitcoin’s Record High

The fact that funding rates have risen above average in 85% of altcoins strengthens expectations for an altcoin season while also increasing the risk of liquidation in leveraged trades.

Glassnode reported that bullish sentiment in the altcoin derivatives market has reached its highest point since Bitcoin’s record high. According to the data, investors in the majority of altcoins are positioning themselves for prices to continue rising.

The funding rate represents the cost of keeping leveraged positions open in futures trading. When bullish trades intensify, this rate generally increases, and investors holding long positions are forced to make higher payments. Therefore, the rise in rates indicates increased leverage usage alongside market optimism.

Record optimism in altcoin funding rates

In the data shared by Glassnode, the 85% rate stands out as the highest value measured since the period when Bitcoin saw its all-time high. The historical chart shows that funding rates across altcoins have risen significantly recently, creating a strong funding spike.

These conditions can persist for weeks during an altcoin season. However, high funding rates do not guarantee a permanent uptrend. If prices reverse against expectations, the forced closure of leveraged positions could trigger a rapid liquidation wave. Therefore, the current landscape points to both strong bullish expectations and an increased sensitivity to sudden corrections.