Analysis: BTC and ETH Volatility Weakens Ahead of US CPI Release, Derivatives Market Signals Cautious Optimism

Odaily According to news, ahead of the US CPI data release, BTC and ETH volatility has weakened. Derivatives indicators show marginal improvement in market sentiment. Although leverage levels have been significantly cleared, funding rates have turned positive, and institutional basis has recovered, traders are still paying a premium for protection against short-term downside risks. Bitcoin may still record its fourth consecutive weekly decline, marking the longest losing streak since mid-November last year. Concurrently, slowing trading activity and declining volatility are also suppressing overall trading volume. In the derivatives market, the trading volume share of Bitcoin call options has rebounded to 65%. However, the implied volatility term structure remains in a state of short-term inversion, indicating that traders are still paying a high "fear premium" for immediate downside protection. (CoinDesk)