Coin Metrics: Despite the current market facing downward pressure, deleveraging makes the system healthier.

Wu learned that Coin Metrics published an in-depth analysis of the underlying factors behind the recent weak performance of the digital asset market. At the macro level, the uncertainty of interest rate cuts in December and the weakness of technology stocks have intensified risk-averse sentiment. Within the crypto space, there has been an outflow of funds and cost pressure in demand channels such as ETFs and digital asset treasuries (DATs), and the liquidation wave on October 10 triggered multi-layered deleveraging, with liquidity in the spot market still not recovering to date. The article analyzes aspects such as the fund flow of ETFs, perpetual futures and the leverage situation in the Decentralized Finance market, and order book liquidity, indicating that although the current market faces downward pressure, deleveraging makes the system healthier, and market positioning becomes more neutral, with a greater influence from fundamentals. The continued recovery of the market requires the restoration of major demand channels and a rebound in spot liquidity; until then, the market will fluctuate between macro risk aversion and the internal market structure of digital assets.