Coinbase: Stable speculative leverage mitigates risk of sharp correction

Coinbase Institutional stated on X that its system leverage indicator, which measures the proportion of purely speculative leverage positions in the crypto market, is now in a stable range at approximately 4-5%. The firm noted this is a significant decrease from about 10% last summer. Coinbase explained that this deleveraging is a key factor in creating a healthier market structure and lowers the risk of a sharp price correction toward the end of the year.