The post Altseason Breaks Down Amid Rising Leverage Pressure appeared on BitcoinEthereumNews.com.

Altcoins continue falling as positive funding rates signal crowded leverage, triggering repeated liquidations across derivatives markets. Altcoin markets continue sliding despite steady conditions across major cryptocurrencies and global risk assets today. Many analysts expected an altseason rally, yet prices remain under pressure. Market data now points toward leverage behavior as the dominant force shaping movements, rather than declining retail participation or weak long-term interest. Crowded Leverage Positions Pressure Altcoin Prices Altcoins have faced persistent selling as leveraged positions increased across derivatives platforms. Funding rates stayed positive for several weeks across many major alternative tokens. Positive funding shows long positions dominate market positioning.  🚨 THIS IS WHY ALTSEASON IS A LIE RIGHT NOW People keep saying retail is gone, but that is not the real reason. Alts are bleeding because leverage got way too crowded, and the market is flushing it. Over the last few weeks, alt funding went hard positive. That means the same… pic.twitter.com/LabnPX78P4 — Wimar.X (@DefiWimar) January 2, 2026 This structure leaves prices vulnerable to small downward moves. When leverage concentrates within thin liquidity, even minor dips trigger forced selling. Liquidations begin once margin levels are breached across exchanges.  Subsequently, stop orders activate and add further selling pressure. Price declines then accelerate without requiring external news events. This pattern repeats whenever prices attempt short-term recoveries. Traders reenter leveraged long positions during brief rebounds.  Funding rates rise again as open interest expands quickly. Markets then reset for another liquidation-driven decline. Altcoins remain more exposed due to structural features.  Liquidity is lower than major assets like Bitcoin. Perpetual futures account for a large share of trading volume. Token unlocks and emissions also add steady supply pressure. Liquidation Cycles Drive Repeated Market Downturns Liquidation-driven moves follow a consistent sequence across altcoin markets. Prices dip slightly, and overleveraged longs face margin calls.…

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Filed under: News - @ January 3, 2026 4:26 am