Analysis: Cryptocurrency market capitalization has given back its year-to-date gains, and its correlation with macroeconomic risks may remain high.

According to Kaito data, Bitcoin market depth has decreased by approximately 30% from its high this year, indicating a significant contraction in market liquidity (Note: Market depth refers to the market's ability to absorb large transactions without significant price fluctuations). In the options market, traders are increasingly betting on volatility, with rising demand for neutral strategies such as straddles and knockouts. Cryptocurrency market capitalization has already given back its year-to-date gains, and market sentiment is likely to remain subdued until further positive news emerges. Max Gokhman, an executive at Franklin Templeton, stated that the correlation between cryptocurrencies and macroeconomic risks will likely remain high until institutions become more deeply involved in the cryptocurrency market and their investments are no longer limited to Bitcoin and Ethereum. (Bloomberg)