Recently, the Bit market has presented a complex interplay of bullish and bearish forces. However, after the Federal Reserve (Fed) announced a slowdown in reducing its balance sheet, the Bit price rebounded from below $83,000 and successfully broke through $87,000 today.

Market analysts point out that trader sentiment is gradually turning optimistic, with increased demand for call options and corresponding price increases. However, macroeconomic uncertainty still exists, and the market's future direction remains unclear.

Market Sentiment Turns Optimistic

QCP Capital analysts indicate that demand for call options has increased, and traders' confidence in Bit has strengthened. This situation stands in sharp contrast to the market atmosphere earlier this week, when put option demand was higher.

Call options give traders the right to purchase assets at a specific price within a specific time frame, while put options give traders the right to sell assets at a specific price within a specific time frame.

Macroeconomic Uncertainty Persists

Nevertheless, Amberdata's Derivatives Director Greg Magadini believes that macroeconomic uncertainty persists, and option skew might again turn bearish. He points out that President Trump's tariff policies have raised market concerns, affecting stock and crypto trends. Magadini stated:

The market still needs to understand how tariffs will impact global trade and economic growth, as well as their effects on inflation and interest rates.

Technical Analysis Indicates Downside Risk

From a technical analysis perspective, Magadini believes:

Bit might drop to $70,000 before resuming an upward trend. While a 20% decline from peak is generally defined as a bear market, crypto market volatility makes analysts cautious about this definition.

Fundstrat's Digital Asset Strategy Head Sean Farrell noted:

The uncertainty of Trump's policy announcements could trigger market volatility at any time, posing a threat to trend-sensitive assets like cryptocurrencies.

On-Chain Data Shows Market Weakness

Blockchain data research company CryptoQuant stated:

The "Bull Market Score Index" has dropped to 20, its lowest level since January 2023.

This index measures 10 key indicators including Bit network activity, investor behavior, demand, and market liquidity. A prolonged index below 40 might indicate a continuing bear market.

Historical data shows Bit prices only sustain an upward trend when the Bull Market Score Index is above 60.

Market Shows Signs of Stabilization

Matrixport's analysis indicates:

Bit is attempting to break through the downward trend, primarily benefiting from the Fed's dovish attitude and Trump's hint at more targeted tariff strategies. Compared to recent weeks, these factors provide a more constructive market environment.

Additionally, as the quarter-end approaches, arbitrage fund selling pressure may be easing, with continued low funding rates and most sell-offs nearing completion. While current catalysts are insufficient to drive Bit to a new all-time high, market prospects have significantly improved.