Analysis: Crypto Market Starts the Week Under Pressure, Rising Demand for Derivatives Risk Hedging

Odaily News: The crypto market started the week under pressure, continuing its recent downtrend. Derivatives data indicates a clear shift towards risk aversion in the market sentiment. Although Bitcoin has fallen approximately 2.8% in the past 24 hours, its price remains significantly above the previous low of around $60,000 and is currently consolidating below $70,000. There is still disagreement in the market on whether the current phase represents a deeper bear market or is approaching a cyclical bottom. The options market also reflects a defensive posture, with the proportion of call options dropping to 48%. Concurrently, the implied volatility structure shows an extreme inverted pattern, with short-term IV rising to around 85%, significantly higher than the long-term level of about 50%, indicating a surge in market demand for short-term downside protection. (CoinDesk)