Analysis: The "1011" clearing event and the increasingly challenging macro environment have been the main drivers of the recent downturn.

BlockBeats News, December 1st: Bitcoin and Ethereum have erased all their gains for the year — a sharp turnaround for a market that just two months ago saw Bitcoin surge to a historic high of $126,000. VCs point out that behind this round of correction are mainly two reasons: the October 11th liquidation event and an increasingly challenging macro environment.

Dragonfly's General Partner Rob Hadick stated that this deleveraging event, triggered by low liquidity, poor risk management, and weak oracle or leverage mechanisms, has caused significant losses and brought about tremendous uncertainty.

Tribe Capital's General Partner and Managing Director Boris Revsin also holds a similar view, calling it a "leverage washout" that has had a chain reaction across the entire market. Meanwhile, the macro environment has also turned less friendly: fading short-term rate cuts, stubborn inflation performance, weakening job market, rising geopolitical risks, and increasing consumer pressure. VCs point out that this series of factors has led to weakened performance in most risk assets over the past two months.

Robot Ventures' Partner Anirudh Pai further emphasized concerns about the slowdown in the U.S. economy. Key growth indicators — including the Citi Economic Surprise Index and 1-year inflation swap (used to hedge inflation risk derivatives) — have started to weaken. Pai stated that this pattern has appeared before concerns about recession, driving a broader risk-off sentiment.

CMS Holdings Co-Founder Dan Matuszewski stated that, apart from tokens supported by buyback mechanisms, there has been almost no "incremental capital inflow" into the crypto market, except for Digital Asset Treasury (DAT) companies. With new demand drying up and ETF inflows no longer providing effective support, the price decline has accelerated further.