Coinbase Institutional says a rough November may have created a strong lineup heading into the end of the year.
The company say Open interest for perpetual futures on Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) has fallen 16% month over month.
Additionally, US spot Bitcoin ETFs (exchange traded funds) saw outflows of $3.5 billion and spot Ethereum ETFs recorded $1.4 billion in redemptions, reflecting broad risk reduction.
Meanwhile, Bitcoin perpetual funding rates also fell two standard deviations below their 90-day average before stabilizing.
“A rocky November may have paved the way for a December to remember…
So…why this cautious optimism? Because the speculative surplus has been washed away.
Our systemic leverage ratio, which tracks purely speculative positioning, has stabilized at ~4%-5% of total market cap, compared to ~10% this summer.
Lower debt burden = healthier market structure + less vulnerability to sharp declines towards the end of the year.”
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