Opinion: This Downtrend is a Cryptocurrency Market's Manageable Deleveraging Event

BlockBeats News, September 23rd, in response to yesterday's sharp decline in the crypto market, several institutional analysts believe this was a manifestation of market deleveraging.

Griffin Sears, Global Head of Derivatives at FalconX, stated that the recent downturn was a controlled deleveraging event in the cryptocurrency market. However, compared to a year ago, the increased leverage in the cryptocurrency market still leaves ample room for significantly large fluctuations.

Chris Newhouse, Research Director at the decentralized finance research firm Ergonia, suggested that Ethereum's sharp decline reflects an excessive leverage encountering illiquidity rather than any fundamental catalyst.

Caroline Mauron, Co-Founder of Orbit Markets, believes that the market is consolidating after yesterday's significant pullback, but sentiment still feels quite tense. If Bitcoin falls below $110,000 or Ethereum falls below $4,000, it could trigger further selling pressure. (Jinse)