Glassnode's latest report highlights parallels between the current crypto market and the early 2022 bear market, noting a decline in open interest from November to December, reflecting reduced risk appetite. Following a flash crash on October 10th, investor sentiment in the options market remains cautious, with a preference for selling over chasing gains. As Bitcoin neared $80,000, put options were favored, but stabilized prices have led to increased call option activity.
Perpetual contract funding rates have stayed mostly neutral, with only brief negative turns, and funding premiums have dropped, suggesting a more balanced market and less speculation. Despite this, ETF demand is waning, with IBIT experiencing outflows for six consecutive weeks, totaling over $2.7 billion in redemptions. This marks the longest negative outflow streak since its inception in January 2024, underscoring a continued decline in risk appetite.
Crypto Market Shows Signs of Stabilization Amid Bearish Trends
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