After rebounding from their recent lows, BTC and ETH have stabilized briefly, but the trend of risk-averse trading in derivatives continues.
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TL;DR
Bitcoin and Ethereum have stabilized after recent lows, but the derivatives market remains risk-averse with declining open interest and high volatility. Macro factors like US government funding boosted risk assets, but traders continue to reduce exposure.
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BitcoinLayer 1Halving TokensEthereumSmart Contractsderivatives marketrisk-averse tradingcryptocurrency volatility
According to Mars Finance, the cryptocurrency market showed signs of stabilization after Tuesday's sharp sell-off, with Bitcoin and Ethereum rebounding from their recent lows. However, the derivatives market as a whole remains in a risk-averse state. On the macro level, the US House of Representatives passed a government funding bill to end part of the government shutdown, boosting US stock futures and global risk assets. Precious metals also rebounded, with gold returning above $5,000 and silver rising to around $90, a single-day increase of nearly 6%. In the derivatives market, traders continued to reduce their risk exposure, with the total notional open interest in cryptocurrency futures contracts falling to $105.9 billion, the lowest level since April of last year. Bitcoin's 30-day implied volatility climbed to an annualized 53%, the highest level since December 1st, while open interest in Bitcoin and Ethereum futures decreased by 0.7% and 2%, respectively.