{"id":62748,"date":"2025-12-10T06:46:39","date_gmt":"2025-12-10T06:46:39","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=62748"},"modified":"2025-12-10T06:46:39","modified_gmt":"2025-12-10T06:46:39","slug":"bitcoin-set-for-santa-rally-as-systemic-leverage-drops-coinbase","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=62748","title":{"rendered":"Bitcoin Set for Santa Rally as Systemic Leverage Drops: Coinbase"},"content":{"rendered":"
\n

\u201cA rocky November may have set the stage for a December to remember,\u201d stated Coinbase Institutional on Tuesday.<\/p>\n

The firm stated<\/a> that its \u201csystemic leverage ratio,\u201d which tracks purely speculative positioning, has stabilized at around 4% to 5% of total market capitalization, and is down from 10% this summer.<\/p>\n

The \u201ccautious optimism\u201d has come about because \u201cspeculative excess has been flushed out,\u201d it stated, explaining that the market structure is healthier now.<\/p>\n

\n

\u201cLower leverage = healthier market structure + less vulnerability to sharp drawdowns heading into year-end.\u201d<\/p>\n<\/blockquote>\n

December Shaping Up For Santa Rally<\/h2>\n

Bitcoin experienced<\/a> its second-worst November in history, recording a 17.7% loss over the month. The worst November was in 2018 when it dumped 36.6%, according to Coinglass. On average, November is usually the best-performing month for the asset.<\/p>\n

December is already shaping up much better as BTC is up 2.3% so far this month. However, it has a long way to go to beat the whopping 47% it made in December 2020.<\/p>\n

Bitcoin powered<\/a> to a three-week high of $94,500 in late trading on Tuesday, but it couldn\u2019t hold those gains and retreated to $92,400 during the Wednesday morning Asian trading session.<\/p>\n

The move comes as the Federal Reserve is expected to announce a rate cut later today, but markets have already priced this in, say analysts.<\/p>\n

Spencer Hallarn, Global Head of OTC at crypto capital markets partner GSR, agreed with Coinbase, stating<\/a>, \u201cI think we\u2019ve shaken out a lot of the bulls and built a solid base of skepticism.\u201d<\/p>\n

\n

\u201cPerpetual funding rates are very low or negative, which suggests there isn\u2019t much leverage in the system. Taken together, that setup looks pretty bullish for a Santa rally. I think EOY is looking good.\u201d<\/p>\n<\/blockquote>\n

Correlations With US Stock Markets<\/h2>\n

Bitcoin is currently mispriced<\/a> relative to the Nasdaq and high-beta tech stocks, creating a buying opportunity in the near term, according<\/a> to Micha\u00ebl van de Poppe, founder of MN Fund, on Tuesday.<\/p>\n

While the Nasdaq has shown resilience, Bitcoin hasn\u2019t kept pace despite their historical correlation, creating a pricing gap. The recovery in high-beta stocks signals renewed risk-on appetite in markets, which historically correlates with Bitcoin rallies, he said while dismissing the four-year cycle thesis.<\/p>\n

\n

\u201cIn that light, in the coming few weeks, perhaps months, it\u2019s very likely to see Bitcoin grind back upward to the levels of $110K-$115K, inversing the entire loss as the entire correction was a little dubious.\u201d<\/p>\n<\/blockquote>\n

The post Bitcoin Set for Santa Rally as Systemic Leverage Drops: Coinbase<\/a> appeared first on CryptoPotato<\/a>.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

\u201cA rocky November may have set the stage for a December to remember,\u201d stated Coinbase Institutional on Tuesday. The firm stated that its \u201csystemic leverage ratio,\u201d which tracks purely speculative positioning, has stabilized at around 4% to 5% of total market capitalization, and is down from 10% this summer. The \u201ccautious optimism\u201d has come about […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-62748","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/62748","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=62748"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/62748\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=62748"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=62748"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=62748"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}