Bitcoin market depth drops about 30% from this year's peak, crypto market cap gives back annual gains

According to ChainCatcher, citing Bloomberg and Kaito data, bitcoin market depth has dropped by about 30% from this year's peak, indicating that market liquidity has also shrunk significantly.

In the options market, traders are increasingly betting on volatility, with rising demand for neutral strategies such as straddles and strangles. The total market capitalization of cryptocurrencies has already given back the gains made earlier this year, and market sentiment may remain subdued until further positive news emerges. Max Gokhman, an executive at Franklin Templeton, stated that the correlation between cryptocurrencies and macro risks may remain high until institutions participate more deeply in the crypto market and investment targets are no longer limited to bitcoin and ethereum.