Coinbase Institutional says a rough November may have created a strong setup before the end of the year.
Company He says Open interest via Bitcoin (Bitcoin), Ethereum (Ethereum), and Solana (Sol) Perpetual futures fell 16% month over month.
Additionally, U.S. Bitcoin ETFs (exchange-traded funds) saw $3.5 billion in outflows, and Ethereum ETFs recorded $1.4 billion in redemptions, reflecting a broad reduction in risk.
Meanwhile, Bitcoin perpetual funding rates also fell two standard deviations from their 90-day average before stabilizing.
“A rocky November may have set the stage for an unforgettable December…
So…why this cautious optimism? Because the speculative surplus has been eliminated.
Our systematic leverage ratio, which tracks purely speculative positions, has stabilized at around 4% to 5% of total market cap, down from around 10% this summer.
Less leverage = healthier market structure + less exposure to sharp drawdowns towards the end of the year.
Follow us on X, Facebook and cable
Never miss a beat – Subscribe Get email alerts delivered directly to your inbox
Checks Price action
browse Hodel’s daily mix
 
Disclaimer: The opinions expressed in The Daily Hodl are not investment advice. Investors should conduct due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured image: Shutterstock/robert_s
