Bitcoin market depth has decreased by approximately 30% from its year-to-date high, and the cryptocurrency market capitalization has given back its year-to-date gains.

According to Mars Finance, citing Kaito data cited by Bloomberg, Bitcoin market depth has decreased by approximately 30% from its high this year, indicating a significant contraction in market liquidity. In the options market, traders are increasingly betting on volatility, with rising demand for neutral strategies such as straddles and knockouts. The market capitalization of cryptocurrencies has already given back its year-to-date gains, 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 macroeconomic risks will likely remain high until institutions become more deeply involved in the cryptocurrency market and their investments are no longer limited to Bitcoin and Ethereum.