The cryptocurrency market is reportedly entering an 'initial stabilization' phase following a significant liquidation event on October 10 and ongoing macroeconomic pressures. Venture capital firms, including Dragonfly and Tribe Capital, attribute the market correction to low liquidity, poor risk management, and flaws in leverage design, which led to large-scale deleveraging. Macroeconomic factors such as sticky inflation, weak employment data, and geopolitical risks have further pressured risk assets. Despite a slight rebound in Bitcoin prices and improved ETF inflows, the market remains sensitive to interest rates and inflation. Venture capitalists emphasize the need for macroeconomic clarity, particularly regarding interest rate policies and Federal Reserve leadership, to stabilize risk assets. While some high-revenue tokens have seen valuations reset to 2024 levels, Bitcoin's dominance remains unchanged, indicating sustained interest in quality altcoins.