Analysis: Bitcoin fluctuates and consolidates after falling below $90,000, with rising risk aversion in the cryptocurrency market

Market data shows that Bitcoin has been fluctuating and consolidating after breaking below $90,000. Analysts believe that this decline aligns with the risk-averse sentiment in traditional markets, leading to an increase in risk aversion in the crypto market.

Derivatives data indicates that Bitcoin's 30-day implied volatility (IV) rose to 44.34 on Tuesday, while open interest (OI) in the past 24 hours fell by 3.25% to $28.3 billion, suggesting that traders with short positions took profits during this period. However, the funding rate generally remained positive throughout the sell-off. Additionally, Zcash's open interest decreased by 2.5%, while its price rose by 1.5%, indicating that short position holders have begun to reduce their bearish exposure since January 8.