Crypto Markets Struggle with Persistent Bearish Sentiment

Cryptocurrency markets have been grappling with a persistent bearish sentiment, as indicated by recent option data and analyst insights. According to Greeks.live, the Bitcoin (BTC) trend may not have reversed yet, and Ethereum (ETH) is expected to experience lower volatility in the near future.

Analysts have been expressing concerns about the market's weak rebound and the potential for further declines in BTC's price. Some even suggest that the cryptocurrency could replicate last year's oscillating trend, with several traders pointing out that the current price has fallen below the "M top," indicating medium-term downside risk. Additionally, the Bitcoin spot ETF has seen record outflows, further intensifying the market's bearish sentiment.

Options traders have been discussing the abnormal performance of market volatility, noting that despite the sharp downturn, the volatility of medium-term options has not effectively increased. This may indicate that the market expects this to be a one-time decline rather than a trend reversal. Traders observed that ETH's gamma distribution is very strong at a price of $2500, with a negative gamma dispersion indicating that the market expects low volatility in the near term.