Coinbase Institutional claims that the rough month of November has created an excellent setup going into the final quarter.
The company says open interest across Bitcoin (BTCEthereumETHSolana,SOLPerpetual futures have fallen by 16% over the past month.
The US Spot Bitcoin ETFs saw outflows of $3.5 billion and the US Spot Ethereum ETFs registered $1.4 billion, indicating a broad reduction in risk.
Bitcoin’s rate of perpetual funding also declined by two standard deviations from its average 90-day value before stabilizing.
“A rocky November may have set the stage for a December to remember…
So…why the cautious optimism? It’s because the excesses of speculative speculation have been eliminated.
Our systemic leverage ratio, which tracks purely speculative positioning, has stabilized at ~4%–5% of total market cap, down from ~10% this summer.
Low leverage = healthier markets structure + less vulnerable to sharp drawsdowns leading into the end of year.”
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Source: dailyhodl.com
