Coinbase Institutional says a tough November may have created a strong setup before the end of the year.
The company says open interest on Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) perpetual futures fell 16% month-over-month.
Additionally, Bitcoin spot ETFs (exchange-traded funds) in the United States saw $3.5 billion in outflows and Ethereum spot ETFs saw $1.4 billion in redemptions, reflecting a broad reduction in risk.
Meanwhile, Bitcoin perpetual funding rates also fell two standard deviations below their 90-day average before stabilizing.
“An eventful November may have set the stage for an unforgettable December…
So… why this cautious optimism? Because the speculative excesses have been flushed out.
Our systemic leverage ratio, which follows purely speculative positioning, has stabilized at around 4-5% of total market capitalization, compared to around 10% this summer.
Lower leverage = healthier market structure + less vulnerability to sharp declines as the end of the year approaches.
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