Coinbase Predicts a Festive Surge for Bitcoin as Systemic Leverage Declines

Coinbase Institutional is predicting a "Santa Rally" for Bitcoin, following a tough November, due to a decrease in the systemic leverage ratio. The ratio, which monitors speculative positioning, has stabilized at around 4-5% of total market capitalization, down from 10% in the summer. The firm believes this indicates a healthier market structure with less vulnerability to sharp drawdowns. Bitcoin has already started to recover, with a 2.3% increase in December so far. Despite a recent retreat, Bitcoin is still showing signs of strength, as it managed to reach a three-week high of $94,500 in late trading. Michaël van de Poppe, founder of MN Fund, also sees a buying opportunity for Bitcoin in the near term, as it's currently mispriced relative to the Nasdaq and high-beta tech stocks.