The cryptocurrency market is undergoing accelerated deleveraging, with Bitcoin and Ethereum seeing a rapid unwinding of leveraged positions. Ethereum's open interest has decreased by 50%, indicating a swift contraction of leveraged funds and increased pressure on overall risk appetite. Bitcoin is approaching a critical support level at $93,000, with liquidity in this range potentially weakening further in the short term. The fourth quarter has seen a significant clearing of previously crowded futures long positions, temporarily alleviating pressure on the leverage side. Attention now turns to ETF holdings, which remain relatively concentrated. Should the market continue to weaken, these funds may face further liquidation demands, introducing new liquidity pressures. As market participants dwindle, liquidity becomes increasingly fragile, making the market highly sensitive and challenging for both long and short positions. Caution is advised.