Brothers and sisters, I can clearly hear the market's breathing.
This data from Coinbase is crucial; the open interest in perpetual contracts has dropped by 16%, and there has been a significant short-term outflow from ETFs, with funding rates once plunging to -2 standard deviations. This is not a bad thing; it indicates that the market is actively detoxing.
The leverage ratio has been compressed from 10% in the summer to now 4%-5%. What does this indicate? The speculative positions that were artificially inflated have been cleared out, leaving behind more genuine holders who truly believe in the trend. The structure has improved, and it is unlikely that panic selling will occur again before the end of the year; the main theme will be oscillation and consolidation at the bottom.
I have always said, do not be swayed by short-term fluctuations. Last month, many people were anxiously shouting that the 'bull market is over,' but from the on-chain data and derivative structures, this is precisely the foundation for stabilizing the mid-term market—once the bubble bursts, the value zone will emerge.
Cautiously optimistic, not blindly shouting for a rise. At this position, I prefer to gradually allocate value assets, especially the mainstream assets that have been wrongly punished. Next year's halving narrative combined with the macro cycle will not be absent.
Remember, the market always rewards those who are awake. Hold onto your spot positions steadily, ignore the noise, and our rhythm is correct. Follow Ake to learn more first-hand information and precise points on cryptocurrency knowledge, becoming your navigation in the crypto world; learning is your greatest wealth!
