Coinbase Institutional: Significant Leverage Clearing in November Leads to a Healthier Market Structure

According to Odaily Planet Daily, Coinbase Institutional stated that despite market volatility in November, relevant indicators show that leverage and speculative positions have significantly declined, which may lay a more solid foundation for the year-end market.

Data indicates that open interest in BTC, ETH, and SOL perpetual contracts decreased by 16% month-on-month; US spot ETFs saw outflows of $3.5 billion in BTC and $1.4 billion in ETH; and the funding rate for BTC perpetual contracts once fell to two standard deviations below the 90-day moving average before rebounding.

Coinbase Institutional believes that with systemic speculative leverage having fallen from around 10% in the summer to 4%–5%, the market structure is healthier and less sensitive to sharp corrections in the short term.