The post This Is Why Altcoins Are Bleeding Despite No Major Bearish News appeared on BitcoinEthereumNews.com.

TLDR: Altcoins are falling due to excess leverage, with crowded long positions increasing market fragility. Positive funding rates show imbalances, making altcoins vulnerable without negative news triggers. Declining open interest confirms deleveraging is driving the selloff, not retail panic selling. Spot buyers remain limited, allowing derivatives-driven liquidations to dominate price action. Altcoins are bleeding despite no major bearish news shaping the broader cryptocurrency landscape. Prices have declined without clear macro shocks, regulatory actions, or ecosystem failures.  This has shifted attention toward internal market dynamics rather than sentiment-driven selling. Current data suggests the weakness stems from positioning stress built during weeks of aggressive leverage, not a sudden loss of confidence among investors. Excess Leverage Created Fragility Without Negative Headlines Altcoins are bleeding as funding rates across perpetual futures markets moved sharply positive. Positive funding signaled that long positions had become overcrowded.  Leverage increased faster than spot demand, creating imbalance beneath stable price action. A recent post by market commentator NoLimitGains addressed this structure directly. The analysis explained that when leverage concentrates on one side, price declines do not require bad news. Small pullbacks can trigger liquidations across tightly packed long positions. THIS IS WHY ALTCOINS ARE BLEEDING Nobody knows what they’re talking about, so I’ll explain everything. People need to stop saying retail is gone, that’s not the story. This move isn’t coming from small players, and the timing is not random. Here’s the real explanation:… pic.twitter.com/kPNpycDdDP — NoLimit (@NoLimitGains) December 24, 2025 Once liquidations begin, selling pressure compounds quickly. Forced closures push prices lower, activating stop losses and margin calls.  Spot participants typically respond later, allowing derivatives-driven flows to dominate near-term movements across altcoin markets. Open Interest Decline Signals Mechanical Deleveraging Altcoins are bleeding alongside a clear reduction in open interest across major exchanges. Falling open interest indicates leveraged positions…

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Filed under: News - @ December 24, 2025 7:19 pm