**[VC Analysis of Crypto Market Correction Causes and Key Future Factors]**
Several venture capital firms believe the recent crypto market correction was primarily influenced by the October 10 liquidation event and tightening macroeconomic conditions. Dragonfly partner Rob Hadick pointed out that low liquidity, insufficient risk management, and flaws in leverage design triggered large-scale deleveraging, increasing market uncertainty. Tribe Capital partner Boris Revsin described this as a "leverage shakeout," which caused a chain reaction.
On the macroeconomic front, factors such as cooling rate cut expectations, sticky inflation, and weakening employment data have put pressure on risk assets. Robot Ventures partner Anirudh Pai mentioned that while leading indicators of the U.S. economy have declined, it is still difficult to determine whether this will deteriorate into a full-blown recession.
VCs believe the market is in an "initial stabilization phase" but has not yet formed a bottom. Bitcoin has rebounded to around $80,000, with slight improvements in ETF inflows, but overall it remains influenced by factors such as interest rates and inflation. The $100,000 to $110,000 range for Bitcoin is seen as a key level for a sentiment reversal in the market, requiring sustained net ETF inflows and a moderate recovery in derivatives open interest to support it. Some high-quality tokens have already corrected to 2024 valuation levels, making on-chain fundamentals more attractive.