Analysis: BTC short momentum strengthens, market enters deep deleveraging phase with extreme fear sentiment still present

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 hold above the $70,000 level. Data from the derivatives market shows that Bitcoin futures short momentum continues to strengthen, with open interest declining to approximately $15.9 billion, indicating the market is in a deep deleveraging phase. Regarding funding rates, Binance and Bybit have dropped to -7% and -8% respectively, showing shorts are paying high costs to maintain their positions. The three-month basis remains at 3%, indicating institutional participation is still low. Defensive sentiment in the options market has cooled somewhat, with the proportion of call options rising to 56%, suggesting some funds are 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, following last week's significant sell-off, the Crypto Fear & Greed Index remains in the "Extreme Fear" zone. (CoinDesk)