The cryptocurrency market is confronting significant structural risks as liquidity and leverage issues intensify, according to CoinEx Founder Yang Haipo. He highlights that the industry is increasingly reliant on external capital inflows to offset high operating costs, with leverage levels nearing 8x. This precarious situation suggests that even minor sell-offs could lead to substantial market declines. Yang estimates the crypto sector incurs annual costs between $60 billion and $80 billion, with corporate operations, mining, and exchange activities contributing significantly. Despite a nominal market capitalization of $2.5 trillion, he believes the real circulating value is closer to $1.6 trillion, with actual margin backing at only $200 billion. This imbalance underscores the market's vulnerability to liquidity shocks. The 2028 Bitcoin halving is identified as a potential stress point, with Yang warning that failure to achieve new highs could undermine confidence in the market's recovery cycles. He also notes that while ETFs provided temporary relief, their inflows may be waning, posing further risks to market stability.