BTC and ETH briefly stabilized after rebounding from their phase lows, and the trend of de-risking in derivatives continues

The cryptocurrency market showed signs of stabilization after a significant sell-off on Tuesday, with Bitcoin and Ethereum rebounding from their recent lows, but the overall derivatives market remains in a risk-off state.

On the macro level, the U.S. House of Representatives passed a government funding plan to end part of the government shutdown, boosting U.S. stock futures and global risk assets; precious metals also rebounded, with gold returning above $5,000 and silver rising to around $90, with a daily increase of nearly 6%. In the derivatives market, traders continued to reduce their risk exposure, with the total nominal open interest of cryptocurrency futures across the network dropping 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 1, while the open interest in Bitcoin and Ethereum futures decreased by 0.7% and 2%, respectively.