Altcoin Rally Fails to Ignite Full-Blown Altseason

The altcoin market has seen a surge in recent times, with its market capitalization hitting $222 billion for the first time in eight months. However, despite this growth, the rally lacks the power needed to ignite a full-blown altseason.

According to Glassnode, altcoin leverage is still below a level that would historically be considered a major risk threshold. This means that traders have not yet piled into altcoin futures positions to an extent typically associated with overheated markets.

The altcoin futures open interest relative to Bitcoin was around -10% to -15% at press time, which is still below the red risk-threshold line near parity. Historically, spikes towards or above this threshold have coincided with periods when altcoin leverage became stretched, increasing the risk of sharp liquidations.