Altcoin Leverage Still Below Overheating Threshold

Altcoin and Bitcoin open interest ratio divergence has not yet reached overheating thresholds, according to Glassnode's analysis released on October 18. The firm uses the gap between altcoin and Bitcoin open interest ratios as a benchmark for determining market overheating, noting potential for further price increases in the altcoin market. Open interest refers to the total value of unsettled futures and options contracts. When the difference narrows within a few percentage points, markets typically enter an overheated phase. However, this condition has not been met currently. Glassnode did not provide specific price targets or liquidation levels for particular altcoins in its analysis, but noted that monitoring the gap between these two asset classes remains important.