The cryptocurrency market is facing deeper structural fragilities as liquidity conditions tighten and leverage remains elevated, according to CoinEx founder Yang Haipo. In his view, the industry has become increasingly dependent on fresh external capital to sustain itself, especially as operating costs remain high. If those inflows slow, even relatively small waves of selling could trigger outsized declines across the market.
High costs meet elevated leverage
Yang estimates that the crypto industry carries annual costs of roughly $60 billion to $80 billion, driven largely by corporate operations, mining, and exchange-related activity. At the same time, he says leverage in the market is approaching 8x. That combination creates a fragile setup: when leverage is high and liquidity is thin, a limited price drop can cascade into broader liquidations and sharper downside moves.
Gap between headline value and real support
Although the market’s nominal capitalization stands near $2.5 trillion, Yang argues that the real circulating value is closer to $1.6 trillion. More importantly, actual margin support may be only around $200 billion. This suggests that headline valuations may overstate the market’s true liquidity foundation, leaving prices exposed if confidence weakens or capital exits accelerate.
2028 halving seen as a major stress test
Yang also identified the 2028 Bitcoin halving as a possible pressure point for the broader market narrative. If Bitcoin fails to reach new highs around that cycle, confidence in the industry’s familiar recovery pattern could be undermined. He added that spot ETF inflows, which previously offered temporary support, may now be losing momentum, creating another source of uncertainty for market stability.
His assessment points less to a short-term trading call and more to a warning about market structure. With high costs, concentrated liquidity, and heavy leverage all in play, crypto investors may need to pay closer attention to how much real capital is supporting current valuations.