A recent report from ChainCatcher suggests that the recent cryptocurrency market downturn is primarily driven by spot sales rather than leveraged trading. This indicates persistent weakness in demand despite a slowdown in price decline. High trading volumes continue to mark the market, with stablecoin growth slowing and particularly notable USDC outflows indicating continued capital flow away from cryptocurrencies toward traditional fiat currencies. Bitcoin is experiencing pressure from factors like liquidations, large holder distributions, ETF fund withdrawals, and evolving macroeconomic expectations. Ethereum is also weakening due to the impact of ETF fund withdrawals and a decline in derivative positions, while positive developments such as BlackRock’s staking ETF application offer some relief.