Market Deleveraging Puts Pressure on Bitcoin and Ethereum

According to Odaily, the current market is experiencing a significant deleveraging phase, with rising risks for maintaining high positions. Ethereum's open interest has decreased by 50%, indicating a rapid contraction of leveraged funds. In this context, overall risk appetite is under pressure. Bitcoin is approaching the critical support level of $93,000, where liquidity might weaken further in the short term. The heavily crowded futures long positions from the fourth quarter have mostly cleared, temporarily easing leverage pressure. Attention now turns to the relatively concentrated ETF holdings; if the market continues to weaken, there may be further demand for position reductions, potentially creating new liquidity pressures.