Bitcoin falls below $90,000 again, traders are betting on short-term continued sideways trading.

Bitcoin options market shows that traders are betting that the world's largest cryptocurrency will continue to fluctuate within a range in the short term, as the continuous pullback has caused the overall market value of crypto assets to evaporate by over $1 trillion. On Friday, the price of Bitcoin fell more than 4% to $88,069 at one point. Currently, Bitcoin still accounts for nearly 60% of the total market value of the entire crypto market. Option data shows that the open interest of near-month contracts expiring in late December is significantly higher than that of long-term contracts, reflecting traders actively selling short-term options to earn premiums, betting that the recent volatility will remain low. Wintermute strategist Jasper De Maere said that the trading structure of Bitcoin options clearly reflects expectations of short-term range trading, as volatility continues to be sold off and demand for both call and put options weakens. At the same time, investors are increasing their long-term options positions, indicating that the market believes in short-term stability but expects greater price volatility in the medium to long term. Earlier this year, Bitcoin reached a record high of $126,000, but a sharp drop in the following two months (driven by factors such as forced liquidation and declining retail interest) caused the entire crypto market to undergo a comprehensive correction. Meanwhile, institutional funds have not flowed back during this period of consolidation. The iShares Bitcoin Trust under BlackRock is experiencing the longest period of outflows since its listing, with outflows totaling over $2.7 billion in the past five weeks. Taking into account the additional $113 million redeemed on Thursday, the ETF is heading towards its sixth consecutive week of net outflows, indicating weak institutional demand. As a result, Bitcoin's performance this year has lagged behind the S&P 500 index for the first time in over a decade. The trend of cryptocurrencies deviating from other risk assets is very rare, even compared to the "crypto winter" period in the past. This trend has also dashed market expectations of accelerated institutional fund inflows after Trump's return to the White House in a favorable regulatory environment. The structure of the derivatives market also reflects increasingly pessimistic sentiment. According to Coinglass data, the funding rate of Bitcoin perpetual contracts has turned negative, meaning that bears need to pay fees to bulls to maintain their short positions, indicating a weak market expectation. The altcoin market is also under pressure, with Ethereum options traders continuing to increase their downside protection positions while being cautious about betting on the upside. At the same time, trading activity on decentralized exchanges has significantly decreased. The trading volume of altcoins on platforms like Hyperliquid has not recovered since the historic liquidation event worth about $19 billion on October 10th. Unfilled contracts for mainstream tokens like Solana and XRP have also not shown significant rebound, indicating that investor confidence in altcoins remains weak.