Market Turbulence and Emerging Optimism
Coinbase Institutional has observed that market turbulence experienced in November may reshape December's trends. This observation follows a period where BTC, ETH, and SOL saw reduced open interest, spot ETF outflows, and fluctuating funding rates. The current scenario signals a healthier market structure and decreases the likelihood of severe market downturns, fostering optimism in the crypto sector as the year concludes.
Deleveraging Trends and December's Outlook
In a detailed report, Coinbase Institutional highlighted that November's market turbulence significantly influenced current trends. The report cited a 16% reduction in open interest across BTC, ETH, and SOL perpetual contracts. This deleveraging is further evidenced by ETF outflows totaling $3.5 billion for BTC and $1.4 billion for ETH. The organization indicated that the speculative bubble has deflated considerably, reducing the systemic leverage ratio from approximately 10% of the total market value to a range of 4%–5%.
December's cautiously optimistic outlook anticipates decreased volatility due to an improved market structure. This sentiment is supported by an observed rebound following an earlier brief dip in BTC perpetual contract funding rates.
The Coinbase Institutional Research Team stated, "November’s turbulence reflected a 'positioning reset' with leverage and speculative froth being cleared. Systemic leverage is far lower than earlier in the cycle, pointing to a healthier market structure."
Historical Cycles and Current Price Metrics
Historical market trends suggest that similar prior cycles of deleveraging have led to market stability, helping to rejuvenate investor confidence while reducing speculative bubbles. These adjustments are comparable to those seen during 2021 downtrends.
As of December 10, 2025, Bitcoin (BTC) was trading at $92,436.11. The market capitalization stood at $1.85 trillion, with a 24-hour trading volume increase of 17.93%. Recent price movements indicated a 2.40% increase over 24 hours, though a 19.05% decline was observed over the preceding 90 days.
Continued focus on exchange-traded funds and systemic leverage metrics could further minimize volatility. Historical data indicates that healthier market structures may emerge if market discipline, characterized by reduced leverage and more regulated ETF movements, persists. Recognition of these structural improvements is evident in responses to official Coinbase Institutional posts.