Altcoin Leverage Remains Elevated Despite October Price Pullback

Leverage remains elevated across large- and mid-cap altcoins despite a crypto market pullback since early October, leaving long positions vulnerable to forced liquidation if prices fall further.

More than 40% of large-cap altcoins have leverage near their highest levels of the year. Among mid-cap tokens, the share with elevated leverage has reached a yearly high. The 40% figure describes the portion of large-cap altcoins near leverage highs, not a leverage rate.

Leverage peaked in early October before prices declined. Leverage remains elevated despite the price pullback.

Further declines could force leveraged long positions to close. Those sales could add pressure to a falling market.