Against that backdrop, the firm wrote:
“As a result, we no longer believe that post-October 10 deleveraging has been a meaningful driver of valuations in recent weeks.”
FAQ ⏰ What happened to crypto futures markets in October 2025? Major exchanges saw a sharp deleveraging event that significantly reduced open interest. Which exchanges were most affected by the deleveraging? Binance and Bybit held the largest shares of futures open interest before and after the drawdown. Why does Grayscale say leverage is no longer driving valuations? Futures open interest stabilized into December instead of continuing to unwind. What does the stabilization suggest about late-2025 market conditions? It points to consolidation and a reset rather than ongoing stress in crypto markets.
