Analysis: BTC and ETH volatility decreases ahead of US CPI release, derivatives market signals cautious optimism

According to Odaily, prior to the release of the US CPI data, BTC and ETH volatility has diminished, and derivatives indicators show a marginal recovery in market sentiment. Although leverage levels have been significantly cleared, funding rates have turned positive, and institutional basis has rebounded, traders are still paying a premium for short-term downside risk protection. Currently, Bitcoin may still record its fourth consecutive week of decline, marking the longest losing streak since mid-November last year. At the same time, reduced trading activity and declining volatility are also suppressing overall trading volume. In the derivatives market, the proportion of call option volume in the Bitcoin options market has rebounded to 65%, but the implied volatility term structure remains in a short-term inverted state, indicating that traders are still paying a high "panic premium" for immediate downside protection. (CoinDesk)