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Learn moreBitcoin crossed $86,000 on Monday, hitting an eight-month high as a short squeeze, strong ETF inflows and improved risk sentiment ahead of the Sept. 24 U.S.-China summit pushed prices higher.
But according to blockchain analytics firm Glassnode, the rally is not yet showing the kind of leveraged excess that typically marks a market top.
Glassnode, which tracks onchain and derivatives data across the crypto market, noted on Sept. 21 that long leverage is "slowly rebuilding" in the options market as Bitcoin touched $86,000.
The open interest put/call ratio, a measure of how many bearish bets (puts) exist relative to bullish ones (calls), is ticking higher but remains "far from the frothy levels we saw near the BTC top," the firm said.
Two markets telling different stories
The chart Glassnode published shows two derivatives markets moving at different speeds. In the options market, traders are gradually adding bullish exposure.
The seven-day average volume put/call ratio has dropped toward 0.6, meaning call volume is outpacing put volume by a wide margin, a sign that traders are positioning for further upside.
But in the perpetual futures market, where traders use leverage to bet on short-term price moves, the picture is calmer.
Funding rates, the periodic payments exchanged between long and short traders to keep perpetual contract prices in line with the spot price, remain below neutral, Glassnode said.
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When funding rates are elevated, it typically signals that leveraged longs are crowded and willing to pay a premium to hold their positions. That's not happening yet.
A rally without the usual excess
The divergence matters because the most dangerous rallies tend to be the ones fueled heavily by leveraged speculation. When funding rates spike and put/call ratios collapse, it often means the market is running on borrowed conviction, and a reversal can unwind fast.
Bitcoin's current move, by contrast, appears driven more by spot demand and short covering than by aggressive leveraged positioning.
Bitcoin remains roughly 32% below its all-time high of $126,000 reached in October 2025, and the CoinGlass Fear & Greed Indexsits at 79, firmly in "Greed" territory but still short of the "Extreme Greed" zone that typically signals overheated sentiment.
This story was originally published by TheStreet on Sep 22, 2026, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.
