Coinbase Institutional: Leverage cleared in November, market structure healthier

Coinbase Institutional stated that the significant decline in market leverage and speculative positions in November may lay a solid foundation for the year-end market. The open interest of BTC, ETH, and SOL perpetual contracts decreased by 16% month on month; US spot ETF outflows of $3.5 billion BTC and $1.4 billion ETH; The funding rate for BTC perpetual contracts fell to 2 standard deviations below the 90 day average at one point before rebounding. The systemic speculative leverage ratio has fallen from around 10% in the summer to 4-5%, and the market structure is healthier, with reduced sensitivity to sharp corrections in the short term.