Odaily Planet Daily reported that regarding yesterday's sharp drop in the crypto market, many institutional analysts believed that this was a sign of market deleveraging.

Griffin Sears, global head of derivatives at FalconX, said the latest decline was a controlled deleveraging event in the cryptocurrency market. However, the increased leverage in the cryptocurrency market compared to a year ago still leaves ample room for unusually large fluctuations.

Chris Newhouse, research director at decentralized finance research firm Ergonia, said Ethereum’s sharp drop reflected excessive leverage meeting insufficient liquidity rather than any fundamental catalyst.

Caroline Mauron, co-founder of Orbit Markets, believes that the market is consolidating after yesterday's sharp pullback, but sentiment remains quite nervous and could lead to further selling if Bitcoin falls below $110,000 or Ethereum falls below $4,000.