The Bitcoin market depth has decreased by about 30% from this year's peak, and the cryptocurrency market capitalization has retraced its gains for the year

According to Bloomberg citing Kaito data, Bitcoin market depth has decreased by about 30% from this year's peak, indicating a significant contraction in market liquidity.

In the options market, traders are increasingly betting on volatility, with rising demand for neutral strategies such as straddles and strangles. The market capitalization of cryptocurrencies has retraced this year's gains, and market sentiment may remain subdued until further positive news emerges. Max Gokhman, an executive at Franklin Templeton, stated that as institutions become more deeply involved in the cryptocurrency market, and investment targets are no longer limited to Bitcoin and Ethereum, the correlation between cryptocurrencies and macro risks may remain high.