PANews reported on September 23rd that according to Jinshi, FalconX's global derivatives director Griffin Sears said: "Overall, we believe that the latest wave of decline is a controlled deleveraging event in the cryptocurrency market. However, compared with a year ago, the increase in leverage in the cryptocurrency market still leaves ample room for unusually large fluctuations."

“Ethereum’s sharp decline reflects excessive leverage meeting illiquidity rather than any fundamental catalyst,” said Chris Newhouse, director of research at decentralized finance research firm Ergonia. “During times of market stress, Ethereum has returned to its historical role as a higher-beta expression of sentiment for digital assets.”

Despite this, Bitcoin's volatility has been relatively contained this year, reflecting its greater market depth and growing role as a portfolio hedge for mainstream investors. With the Federal Reserve cutting interest rates, industry analysts expect inflows to resume, even if crypto reserve companies slow their purchases. "Overall, we expect Bitcoin to trend more closely in line with equities and macro risk," said Sears.