Coin Metrics has released an analysis detailing the factors contributing to the recent weakness in the cryptocurrency market. On a macro level, uncertainty surrounding a potential interest rate cut in December and a decline in tech stocks have heightened risk aversion. Within the crypto sector, there has been an outflow of funds and cost pressures in demand channels such as ETFs and Digital Asset Treasuries (DATs). The market also experienced a wave of deleveraging following a liquidation event on October 10, with spot market liquidity yet to recover. The analysis examines ETF fund flows, perpetual futures, DeFi market leverage, and order book liquidity. Despite current downward pressures, the report suggests that deleveraging has made the system healthier, with a more neutral market positioning driven by fundamentals. For a sustained recovery, the market requires a rebound in key demand channels and spot liquidity. Until these conditions are met, the market is expected to fluctuate between macroeconomic risk aversion and internal structural tensions.