Ahead of the US CPI data release, BTC and ETH volatility eased, and derivatives indicators showed a marginal recovery in market sentiment. Although leverage levels have been significantly cleared, funding rates have turned positive, and institutional basis has rebounded, traders are still paying a premium for short-term downside protection. Bitcoin may still record its fourth consecutive week of decline, the longest losing streak since mid-November last year. Slower trading activity and decreased volatility are also suppressing overall trading volume. In the derivatives market, the proportion of call options trading in the Bitcoin options market has rebounded to 65%, but the implied volatility term structure remains inverted, indicating that traders are still paying a high "fear premium" for immediate downside protection. (CoinDesk)