The cryptocurrency market experiences a price rebound since March, yet trader caution persists amid lingering bearish sentiment.
Current Crypto Market Situation
Bitcoin and Ethereum have shown price increases, with Bitcoin briefly surpassing $87,000 and Ethereum above $2,000. However, many major cryptocurrencies, including BTC, ETH, and Solana (SOL), continue to trade below their year-opening levels.
Bearish Sentiment Among Traders
Despite the broader market's signs of improvement, trading activity remains cautious. Derivatives market data reveals rising demand for Bitcoin and Ethereum put options, indicating persistent bearish sentiment among traders. BTC and ETH perpetual contract funding rates remain negative, and perpetual open interest has stayed mostly flat.
Historical Parallels and Surprises
The report highlights that bearish sentiment still dominates the market despite positive price movements, which aligns with January's findings of limited market excitement following Donald Trump's inauguration. A surge in activity was noted due to the launch of meme coins such as TRUMP and MELANIA, but no significant market shifts occurred.
Although cryptocurrency prices are currently rising, trader activity remains cautious, reflecting the persistent bearish sentiment in the market.
