Recent market shifts have fueled a deleveraging phase across cryptocurrencies, prompting heightened risks in holding leveraged positions. As per Odaily, Ethereum’s open interest has significantly declined by 50%, suggesting a rapid contraction of leveraged funds. This trend reflects the broader weakness in the overall market. Bitcoin is now approaching its critical support level of $93,000, where liquidity may further decline in the short term. While the clearing of heavily crowded futures long positions from Q4 has temporarily alleviated leverage pressures, watch for potential demand for further portfolio reductions if the market weakens. This could subsequently intensify liquidity challenges.