Analysis: Bitcoin Breaks Below $90,000 and Consolidates, Risk-Off Sentiment Heats Up in Crypto Market

According to Odaily, market data shows Bitcoin broke below $90,000 and entered a consolidation phase. Analysis suggests this decline aligns with risk-off sentiment in traditional markets, which is also heating up in the crypto market. Derivatives data indicates Bitcoin's 30-day implied volatility (IV) rose to 44.34 on Tuesday, while open interest (OI) over the past 24 hours fell by 3.25% to $28.3 billion. This suggests traders with short positions took profits during this period, although funding rates generally remained positive throughout the sell-off. Additionally, Zcash open interest decreased by 2.5% while its price increased by 1.5%, indicating that holders of short positions since January 8th are beginning to reduce their bearish exposure. (CoinDesk)