Coinbase Institutional has expressed cautious optimism about the cryptocurrency market, citing the deflation of speculative bubbles as a positive development. In a recent article, the institution noted that November's market turmoil might have set the stage for a more stable December. Key indicators include a 16% month-over-month decrease in open interest for BTC, ETH, and SOL perpetual contracts, and significant outflows from US spot ETFs, with $3.5 billion in BTC and $1.4 billion in ETH withdrawn.
The report highlights that BTC perpetual contract funding rates briefly dipped significantly before recovering, suggesting a healthier market structure. Systemic leverage has decreased from around 10% of total market capitalization in the summer to 4%-5%, reducing the likelihood of a sharp market correction before year-end.
Coinbase Sees Healthier Market as Speculative Bubbles Deflate
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