- Coinbase Institutional reports decline in crypto leverage, fostering market stability.
- Systemic leverage dropped to 4%-5%, down from 10% in summer.
- Market reactions point to a cautiously optimistic December outlook.
Coinbase Institutional reports a reduction in speculative leverage following November’s market fluctuations, indicating stabilized conditions in Bitcoin, Ethereum, and Solana futures ahead of December.
This shift suggests a healthier market structure, minimizing risks of major downslides, potentially paving the way for steadier conditions if macroeconomic stability persists.
Crypto Contracts See 16% Decline in Open Interest
Coinbase Institutional reports a 16% decline in the open interest of BTC, ETH, and SOL perpetual contracts. Significant outflows from U.S. spot ETFs were noted, with speculative long positions resetting. This occurred amid a market correction throughout November, reflecting a broader deleverage.
Systemic leverage stabilized at 4%-5% of the total market capitalization, a decrease from 10% over the summer months. Reduced leverage signals a more robust market structure and dampens the potential for sharp price declines. Coinbase Institutional maintains a cautiously optimistic stance for December, noting that excessive speculation has been curtailed. As noted by the Coinbase Institutional Research Team, Coinbase, “Excess speculation has been curtailed as leveraged perps positions were reduced and ETF outflows removed froth, leaving systemic speculative leverage around 4–5% of total market cap vs. ~10% in summer.”
Market analysts and observers highlight the decline in speculative positioning. Funding rates for BTC perpetual contracts showed anomalies before returning to average levels. The community’s consensus appears to reflect a preference for more sustainable trading conditions as the year concludes.
Stabilized Leverage Could Precede Market Rally
Did you know? The reduction in systemic leverage to 4%-5% this November matches historical periods of market correction, where a similar leverage drop created a foundation for subsequent market rallies.
According to CoinMarketCap, Bitcoin is priced at $92,415.41, with a market cap of $1.84 trillion. Its market dominance stands at 58.47%. Though its 24-hour trading volume has experienced an 18.16% increase, the price has decreased by 19.12% over the last 90 days.
Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 04:02 UTC on December 10, 2025. Source: CoinMarketCapCoincu research team articulates potential ongoing stabilization due to decreased system leverage. Predictive models suggest regulatory framework advancements could further stabilize the crypto ecosystem, enhancing technological maturation and institutional engagement into the next fiscal year.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Source: https://coincu.com/markets/crypto-leverage-stabilization-december-outlook/

