Glassnode says Bitcoin rally lacks leveraged excess despite $86,000 high

Bitcoin traded above $86,000 on Monday, reaching an eight-month high driven by a short squeeze, strong ETF inflows, and improved risk sentiment ahead of the Sept. 24 U.S.-China summit. However, blockchain analytics firm Glassnode reports that the current rally does not yet exhibit the leveraged excess typically associated with market tops.

In a note dated Sept. 21, Glassnode stated that long leverage is "slowly rebuilding" in the options market as the asset touched its recent peak. The firm tracks onchain and derivatives data across the crypto market and highlighted a divergence between different trading venues. While traders are gradually adding bullish exposure in options, the perpetual futures market remains comparatively calm.

The open interest put/call ratio, which measures bearish bets relative to bullish ones, is ticking higher but remains "far from the frothy levels we saw near the BTC top," according to Glassnode. In the options market specifically, the seven-day average volume put/call ratio has dropped toward 0.6. This figure indicates that call volume is outpacing put volume by a wide margin, suggesting traders are positioning for further upside.

Conversely, funding rates in the perpetual futures market remain below neutral. Funding rates are periodic payments exchanged between long and short traders to align perpetual contract prices with the spot price. Glassnode noted that elevated funding rates typically signal crowded leveraged longs willing to pay a premium to hold positions, a condition that is not currently present.

This distinction matters because rallies fueled heavily by leveraged speculation can unwind rapidly if funding rates spike and put/call ratios collapse. By contrast, Bitcoin's current move appears driven more by spot demand and short covering than by aggressive leveraged positioning.

The asset remains roughly 32% below its all-time high of $126,000 reached in October 2025. The CoinGlass Fear & Greed Index sits at 79, placing sentiment firmly in "Greed" territory but still short of the "Extreme Greed" zone that typically signals overheated conditions.