According to PANews, the latest weekly report from Glassnode highlights similarities between the current market conditions and the early stages of the 2022 bear market, also known as the crypto winter. During November to December, open interest has consistently declined, indicating a reduced risk appetite among investors, particularly following the flash crash on October 10. The options market reflects cautious sentiment, with investors preferring to sell rather than chase potential gains. Earlier this week, as Bitcoin's price approached $80,000, put options dominated the market. However, as prices stabilized, investor panic subsided, and funds shifted towards call options.
Perpetual contract funding rates have remained mostly neutral, with only brief periods of negative values, while funding premiums have significantly decreased. This suggests a more balanced market environment with reduced speculation. Demand for ETFs continues to weaken, with IBIT experiencing outflows for the sixth consecutive week, marking the longest streak of negative flows since its launch in January 2024. Over the past five weeks, redemptions have totaled more than $2.7 billion. Derivatives data further corroborates the decline in risk appetite.
