COINOTAG News, December 10th, reported that Spencer Hallarn, director of OTC trading at GSR, noted that the majority of long positions appear to have been liquidated, establishing a cautious base for the crypto market. He observed that perpetual funding rates have fallen and even turned negative, signaling subdued leverage and tighter risk premia. In this setup, the outlook could be supportive of a Santa rally as macro conditions stay favorable and liquidity remains steady.

From a risk-management perspective, the diminished leverage and negative funding rates may compress risk premia and reduce downside exposure, enabling a measured rebound rather than a rapid surge. Market participants should track funding-rate dynamics, open interest, and cross-exchange liquidity to validate the trajectory. Hallarn’s remarks highlight a structure where cautious positioning could yield tangible gains if on-chain activity remains stable and demand returns, potentially benefiting BTC and other large-cap assets.