The combination has driven traders back into risk assets, with both Bitcoin and Ethereum seeing renewed long positioning.
The elevated open interest signals strong demand for optionality around the potential breakout above previous highs.
Glassnode data indicated traders are paying premiums for upside convexity as Ethereum approaches record levels.
Options data shows low implied volatility despite the open interest buildup, suggesting markets expect a sharp move ahead while hedging downside risk.
Kooner, from Bitfinex, noted that compressed volatility indicates any macro shock could trigger significant price swings.
The leverage buildup creates conditions where price movements can trigger cascading effects across multiple assets.
Glassnode highlighted that the broad altcoin strength reflects “an intensifying speculative bid and a market-wide appetite for higher beta exposures as momentum builds outside Bitcoin.”
