BITCOIN, ETHEREUM BEARS ARE BACK IN CONTROL, 2 DERIVATIVES METRICS SUGGEST

Last updated: June 19, 2025, 20:37 | Written by: Brock Pierce

The cryptocurrency market has been experiencing significant turbulence lately, leaving investors wondering if the bullish momentum observed earlier this month has truly stalled.Recent analysis indicates that Bitcoin and Ethereum, the two leading cryptocurrencies, are facing renewed bearish pressure.This shift in sentiment is supported by derivative metrics, which paint a challenging picture for crypto bulls attempting to reverse the ongoing downtrend.The total crypto market capitalization has plummeted to a two-month low of $1.13 trillion over the past six weeks, highlighting the extent of the prevailing bearish market structure.This downturn is largely attributed to macroeconomic uncertainty, which has created an environment where Bitcoin price bulls have limited opportunities to counter the downward momentum. Bitcoin, Ethereum bears are back in control Two derivative metrics suggest Bitcoin, Ethereum bears are back in control Two derivative metrics suggestWhile a short-term analysis between May 12 and May 19 showed minor gains for Bitcoin, Ether, and BNB, the broader trend indicates that bears are firmly in control.In this article, we will delve into the factors driving this bearish resurgence, analyze the key derivative metrics, and explore potential strategies for navigating the current market conditions.

Understanding the Bearish Market Structure

The current bearish market structure is characterized by a prolonged period of downward pressure on cryptocurrency prices.Over the past six weeks, this pressure has driven the total market capitalization to alarming lows.Several factors contribute to this phenomenon, including macroeconomic uncertainty, regulatory concerns, and investor sentiment.

Macroeconomic Uncertainty

Global economic conditions play a significant role in influencing the cryptocurrency market. According to two derivative metrics, crypto bulls will have a hard time to break the downtrend, even though analyzing a shorter timeframe provides a neutral view with Bitcoin (BTC), Ether (ETH) and BNB, on average, gaining 0.3% between May 12 and May 19. Total crypto market cap in USD, 12-hour. Source: TradingViewFactors such as inflation, interest rate hikes, and geopolitical tensions can create uncertainty and lead investors to reduce their exposure to riskier assets like cryptocurrencies.When the macroeconomic outlook is unclear, investors often seek safer havens, leading to a sell-off in the crypto market.

For instance, rising inflation rates have prompted central banks to implement tighter monetary policies, including raising interest rates. According to two derivative metrics, crypto bulls will have a hard time to break the downtrend, even though analyzing a shorter timeframe provides a neutral view with Bitcoin, Ether and BNB, on average, gaining 0.3% between May 12 and May 19. Total crypto market cap in USD, 12-hour. Source: TradingViewThis, in turn, increases the cost of borrowing and reduces liquidity in the market, impacting the demand for cryptocurrencies.Geopolitical tensions and trade disputes further exacerbate the situation, creating a climate of fear and uncertainty among investors.

Regulatory Concerns

Regulatory developments also play a crucial role in shaping the cryptocurrency market. A bearish market structure has been pressuring cryptocurrencies prices for the past six weeks, driving the total market capitalization to its lowest level in two months at $1.13 trillion. According to two derivatives metrics, crypto bulls will have a hard time to break the downtrend, even though aIncreased scrutiny from regulatory bodies can create uncertainty and dampen investor enthusiasm.Crackdowns on cryptocurrency exchanges, restrictions on trading activities, and unclear regulatory frameworks can all contribute to bearish sentiment.

For example, if a major regulatory body announces plans to tighten regulations on cryptocurrencies, it can trigger a sell-off as investors anticipate potential challenges for the industry.Similarly, if a country bans or restricts the use of cryptocurrencies, it can negatively impact market sentiment and lead to price declines.

Investor Sentiment

Investor sentiment is a key driver of market trends. According to two derivative metrics, crypto bulls will have a hard time to break the downtrend, even though analyzing a shorter timeframe provides a neutral view with Bitcoin ($84,142.00 ) (BTC), Ether (ETH) and BNB ($626.11 ), on average, gaining 0.3% between May 12 and May 19. Total crypto market cap in USD, 12-hour. Source: TradingViewWhen investors are optimistic about the future prospects of cryptocurrencies, they are more likely to buy and hold, driving prices upward.Conversely, when investors are pessimistic, they are more likely to sell, leading to price declines.

News headlines, social media discussions, and expert opinions can all influence investor sentiment. BTCUSD Bitcoin Bitcoin, Ethereum bears are back in control Two derivative metrics suggest. Given the uncertainty in the macroeconomic environment, Bitcoin price bulls have no reason to betNegative news stories about security breaches, regulatory actions, or market crashes can create fear and uncertainty, leading to a sell-off. Bitcoin, Ethereum bears are back in control Two derivative metrics suggest Given the uncertainty in the macroeconomic environment, Bitcoin price bulls have no reason to bet against a six-week descending wedge pattern.Positive news stories about institutional adoption, technological advancements, or regulatory clarity can boost confidence and drive prices upward. Bitcoin, Ethereum bears are back in control Two derivative metrics suggestGiven the uncertainty in the macroeconomic environment, Bitcoin price bulls haveCurrently, fear seems to be outweighing any significant bullish sentiment.

Analyzing Key Derivatives Metrics

Derivatives metrics provide valuable insights into market sentiment and can help traders anticipate potential price movements.Two important derivatives metrics to consider are:

Futures Basis: The futures basis is the difference between the price of a cryptocurrency in the spot market and its price in the futures market.A positive basis indicates bullish sentiment, while a negative basis indicates bearish sentiment.
Options Skew: The options skew measures the difference in implied volatility between call options (bets on price increases) and put options (bets on price decreases).A higher skew towards put options suggests that investors are more concerned about potential downside risk.

Futures Basis Analysis

A declining futures basis suggests that traders are less willing to pay a premium for cryptocurrency futures contracts, indicating a bearish outlook.This can be caused by concerns about potential price declines or a lack of confidence in the future prospects of the market.

Conversely, an increasing futures basis suggests that traders are more willing to pay a premium for futures contracts, indicating a bullish outlook.This can be caused by optimism about future price increases or a belief that the market is undervalued.

Options Skew Analysis

A higher options skew towards put options indicates that investors are more concerned about potential downside risk and are willing to pay more for protection against price declines. Ethereum s impressive rally this month secures its spot in our biggest crypto predictions for June. Thanks to the recent price increase, on-chain data now shows that 67% of ETH holders are in profit, significantly higher than the percentage recorded back in April. At press time, Ethereum s price is trading at its highest level in three months.This suggests a bearish sentiment in the market.

A higher options skew towards call options indicates that investors are more optimistic about potential price increases and are willing to pay more for exposure to upside potential.This suggests a bullish sentiment in the market.

Ethereum's Recent Rally: A Temporary Reprieve?

Despite the overall bearish market structure, Ethereum has experienced an impressive rally this month, positioning it favorably in various crypto predictions for June.This surge has led to a significant increase in the percentage of ETH holders in profit, with on-chain data showing that approximately 67% are now in the green, a substantial improvement from the figures recorded in April.At present, Ethereum's price is trading at its highest level in three months, sparking optimism among investors.However, it's crucial to analyze whether this rally is sustainable amidst the broader bearish context.

While Ethereum's recent performance is encouraging, the prevailing bearish sentiment in the overall cryptocurrency market cannot be ignored. Given the uncertainty in the macroeconomic environment, Bitcoin price bulls have no reason to bet against a six-week descending wedge pattern. A bearish market structure has been pressuring cryptocurrencies prices for the past six weeks, driving the total market capitalization to its lowest level in two months at $1.13 trillion. According to two derivative metricsThe macroeconomic uncertainties and regulatory concerns discussed earlier continue to pose a threat to the sustainability of this rally. Bitcoin, Ethereum bears are back in control Two derivative metrics suggest cointelegraph.com, UTC A bearish market structure has been pressuring cryptocurrencies prices for the past six weeks, driving the total market capitalization to its lowest level in two months at $1.13 trillion.If the bearish market structure persists, Ethereum may struggle to maintain its upward momentum, and a correction could be imminent.Therefore, investors should exercise caution and carefully monitor market developments before making any investment decisions.

Strategies for Navigating the Bearish Market

Navigating a bearish market can be challenging, but there are several strategies that investors can employ to mitigate risk and potentially profit from the downturn.

Diversification: Diversifying your cryptocurrency portfolio can help reduce risk by spreading your investments across multiple assets. Bitcoin, Ethereum bears are back in control, 2 derivatives metrics suggest Given the uncertainty in the macroeconomic environment, Bitcoin price bulls have no reason to bet against a six-weekInstead of putting all your eggs in one basket, consider investing in a variety of cryptocurrencies with different risk profiles and use cases.
Dollar-Cost Averaging (DCA): Dollar-cost averaging involves investing a fixed amount of money at regular intervals, regardless of the price of the asset. According to two derivative metrics, crypto bulls will have a hard time to break the downtrend, even though analyzing a shorter timeframe provides a neutral view with Bitcoin, Ether and on average, gaining 0.3% between May 12 and May 19.This strategy can help reduce the impact of market volatility by averaging out your purchase price over time.
Stop-Loss Orders: Stop-loss orders are instructions to automatically sell an asset if its price falls below a certain level.This can help limit your potential losses in a declining market.
Hedging: Hedging involves taking positions that offset the risk of your existing investments. Given the uncertainty in the macroeconomic environment, Bitcoin price bulls have no reason to bet against a six-week descending wedge pattern. A bearish market structure has been pressuring cryptocurrencies prices for the past six weeks, driving the total market capitalization to its lowest level in two months at $1.13 trillion. According to two derivative metrics, crypto bulls will have aFor example, you could use futures contracts or options to protect your portfolio against potential price declines.
Staying Informed: Keeping up-to-date with market news, regulatory developments, and macroeconomic trends is crucial for making informed investment decisions.Follow reputable news sources, attend industry events, and consult with financial advisors to stay informed.

Short Selling: A Risky but Potentially Rewarding Strategy

Short selling involves borrowing an asset and selling it with the expectation that its price will decline. ETHUSD Ethereum Bitcoin, Ethereum bears are back in control Two derivative metrics suggest Given the uncertainty in the macroeconomic environment, Bitcoin price bulls have no reason to bet against a six-week descending wedge pattern.If the price does decline, you can buy back the asset at a lower price and return it to the lender, profiting from the difference.

However, short selling is a risky strategy that can result in significant losses if the price of the asset increases instead of decreases.It is important to carefully consider your risk tolerance and conduct thorough research before engaging in short selling.

Key Takeaways and Future Outlook

The cryptocurrency market is currently experiencing a bearish trend, with Bitcoin and Ethereum facing renewed downward pressure.Macroeconomic uncertainty, regulatory concerns, and investor sentiment are all contributing factors to this downturn.Derivative metrics, such as the futures basis and options skew, support the bearish outlook, suggesting that crypto bulls will have a hard time breaking the downtrend.While Ethereum has shown recent positive momentum, its sustainability remains uncertain amidst the broader bearish context.

To navigate the current market conditions, investors should consider implementing strategies such as diversification, dollar-cost averaging, and stop-loss orders.Staying informed about market developments and consulting with financial advisors is also crucial for making informed investment decisions. Given the uncertainty in the macroeconomic environment, Bitcoin price bulls have no reason to bet against a six-week descending wedge Bitcoin, Ethereum bears are back in control Two derivative metrics suggest - XBT.MarketWhile short selling can be a potentially rewarding strategy, it is important to carefully consider the risks involved.

The future outlook for the cryptocurrency market remains uncertain.However, by understanding the factors driving market trends and implementing appropriate risk management strategies, investors can navigate the challenges and potentially profit from opportunities that arise.

Frequently Asked Questions (FAQs)

Here are some frequently asked questions about the current state of the Bitcoin and Ethereum markets:

Q: What are the main factors contributing to the current bearish market?

A: The main factors contributing to the current bearish market include macroeconomic uncertainty, such as inflation and interest rate hikes; regulatory concerns, such as potential crackdowns on cryptocurrency exchanges; and negative investor sentiment, often fueled by negative news and market crashes.

Q: How reliable are derivative metrics in predicting market trends?

A: Derivative metrics, such as the futures basis and options skew, can provide valuable insights into market sentiment and potential price movements.However, they are not foolproof predictors and should be used in conjunction with other forms of analysis.

Q: Is Ethereum's recent rally sustainable?

A: While Ethereum's recent rally is encouraging, its sustainability remains uncertain amidst the broader bearish context.Macroeconomic uncertainties and regulatory concerns continue to pose a threat, and a correction could be imminent.

Q: What are some strategies for mitigating risk in a bearish market?

A: Strategies for mitigating risk in a bearish market include diversification, dollar-cost averaging, stop-loss orders, and hedging.

Q: Is short selling a good strategy in a bearish market?

A: Short selling can be a potentially rewarding strategy in a bearish market, but it is also a risky strategy that can result in significant losses. Given the uncertainty in the macroeconomic environment, Bitcoin price bulls have no reason to bet against a six-week descending wedge pattern.It is important to carefully consider your risk tolerance and conduct thorough research before engaging in short selling.

Call to Action

Are you prepared to navigate the current bearish market conditions?Consider exploring the strategies discussed in this article to protect your investments and potentially profit from opportunities that arise. Bitcoin, Ethereum bears are back in control Two derivative metrics suggest⁣ bearsareback incontrol metrics bitcoinethereumStay informed, stay vigilant, and consult with financial advisors to make informed decisions. According to two derivative metrics, crypto bulls will have a hard time to break the downtrend, even though analyzing a shorter timeframe provides a neutral view with Bitcoin, Ether and BNB, on average, gaining 0.3% between May 12 and May 19.Don't let fear drive your actions – empower yourself with knowledge and a strategic approach.