Data on open interest for BTC and ETH shows a clear trend: leverage for both BTC and ETH is gradually attempting to increase. Looking at the past year's history, price increases are often accompanied by rising leverage. Currently, both BTC and ETH funding rates are positive, indicating that bullish sentiment still dominates the market. Long positions are more aggressive than shorts, and the overall leverage direction leans bullish. Positive funding rates mean that longs are willing to pay a premium to hold their positions, which typically happens when the market expects prices to continue rising—reflecting an optimistic sentiment. However, it’s worth noting that when leverage increases alongside positive funding rates, structural risks in the market also accumulate. Short-term price volatility could be amplified, as a rapid price drop might trigger a chain reaction of deleveraging. The current overall leverage level is still far below the mid-year peak, meaning this round of leverage expansion seems more like a moderate test rather than an overheating phase. On the spot side, BTC continues to flow out of exchanges, and long-term holders’ positions remain stable. The increase in leverage doesn’t appear to stem from panic-driven chasing but is more likely a strategic move in anticipation of a recovery in macro liquidity. Sponsored by @Bitget｜Save the most on fees, grab the best rewards, and become a VIP on Bitget!