Analysis: BTC Bearish Momentum Strengthens, Market Enters Deep Deleveraging Phase with Extreme Fear Persisting

Odaily News The crypto market structure shows divergent trends, with the Memecoin sector leading gains while mainstream assets perform relatively weakly. Bitcoin is still struggling to firmly break above the $70,000 mark. Data from the derivatives market indicates that bearish momentum in Bitcoin futures continues to strengthen, with open interest declining to approximately $15.9 billion, signaling the market is in a deep deleveraging phase. Regarding funding rates, Binance and Bybit have dropped to -7% and -8% respectively, indicating bears are paying high costs to maintain their positions. The three-month basis remains at 3%, suggesting continued low institutional participation. Defensive sentiment in the options market has cooled slightly, with the proportion of call options rebounding to 56%, indicating some capital is beginning to attempt bottom-fishing. The implied volatility structure is also transitioning from extreme inversion to a mixed structure, reflecting that short-term hedging demand remains high, but long-term volatility expectations are stabilizing. In terms of market sentiment, the Crypto Fear & Greed Index remains in the "Extreme Fear" zone following last week's significant sell-off. (CoinDesk)