Coinbase Institutional: Leverage significantly cleared, market structure healthier

Coinbase Institutional stated that despite the volatility in market trends, relevant indicators show that leverage and speculative positions have significantly retreated, which may lay a more robust foundation for the year-end market.

Data indicates that the open interest of BTC, ETH, and SOL perpetual contracts decreased by 16% month-on-month; the U.S. spot ETF saw an outflow of $3.5 billion in BTC and $1.4 billion in ETH; the funding rate for BTC perpetual contracts briefly fell below 2 standard deviations from the 90-day average before rebounding. Coinbase Institutional believes that as the systemic speculative leverage has retreated from about 10% in the summer to 4%-5%, the market structure is healthier, and the sensitivity to sharp corrections in the short term has decreased.