The cryptocurrency market has surrendered its year-to-date gains, with Bitcoin's market depth shrinking by approximately 30% from its peak, according to Kaito data. This contraction highlights a significant reduction in market liquidity. In the options market, traders are increasingly adopting neutral strategies like straddles and knockouts, reflecting heightened expectations of volatility. Market sentiment remains cautious, with the correlation between cryptocurrencies and macroeconomic risks expected to persist. Max Gokhman of Franklin Templeton suggests that this correlation will continue until institutional investments broaden beyond Bitcoin and Ethereum, potentially stabilizing the market.