Crypto markets remain in a difficult phase, with data showing hesitation in both spot and derivatives activity. In contrast, US equities continue to climb, moving in the opposite direction to digital assets.
This cautious sentiment is reflected in Bitcoin’s recent performance. A report from Bybit and Block Scholes shows the asset attempted several rebounds this month but failed to hold any gains. It quickly slipped back into a tight range, signaling weak short-term confidence.
Bybit’s report shows the major reversal began in early October when Bitcoin dropped from its record high. The decline triggered one of the most intense liquidation events of the year, lowering open interest across major perpetual markets. Open interest has remained low since then, indicating participants are cautious after the earlier wipeout removed excessive exposure.
After weeks of thin leverage, the early November slide did not trigger widespread forced selling, showing the market was less prone to large liquidation cascades. BTC briefly rose above $107,500 on November 10 following Senate progress, but lacked momentum and fell below $105,000 after the US government reopened. The asset has since plummeted to a six-month low, trading around $95,000 today.
Meanwhile, traditional markets reacted positively. The end of the 43-day government shutdown fueled a strong equity rally, pushing the Dow to new record highs.
The divergence between cautious crypto activity and rising equity sentiment highlights a shift in market response to political developments. Digital assets now face the challenge of regaining confidence without relying solely on macro news.
Major altcoins show similar weakness, with many stuck below levels lost during October and November. Their attempts to recover remain limited, and overall momentum is low.
Derivatives trading also shows signs of caution. Options data now reflects higher volatility than earlier in the year. Put options are seeing the strongest demand, indicating participants are taking a defensive stance.
Funding rates in perpetual markets provide additional insight into market positioning. Large-cap assets show mixed signals, while many altcoins lean negative, mirroring soft spot performance.
Analysts note this pattern often emerges when participants avoid building fresh long exposure after sharp reversals. Overall, the current behavior indicates caution dominates over aggressive positioning.
