The cryptocurrency market has seen a significant shift in sentiment, with the CMC Crypto Fear and Greed Index dropping sharply from the greed zone to a neutral level of 43. 

According to CoinMarketCap, the market's declining optimism coincides with a week of losses for major cryptocurrencies, including Bitcoin (BTC) and Ethereum (ETH), which fell by 2.43% and 4.66%, respectively, over the past seven days. At the time of writing, BTC is priced at $94,209.81, while ETH is valued at $3,282.51.‍

Bearish Sentiment for Bitcoin

QCP Capital reported a bearish outlook for Bitcoin during the early Asia session, citing news of the U.S. government selling a portion of its seized Silk Road BTC. This development has added to selling pressure in the market, compounded by broader macroeconomic concerns.

The Federal Reserve's latest minutes revealed a more hawkish stance, signaling a slower pace of rate cuts amid rising inflation risks. Additionally, mixed signals from U.S. labor data have contributed to market uncertainty. While Tuesday’s JOLTS job openings painted a picture of a robust labor market, Wednesday’s ADP employment survey indicated a slowdown in private sector hiring and wage growth.‍

Options Market Activity

Greeks Live highlighted significant activity in the crypto options market, with 19,000 BTC options expiring at a notional value of $1.81 billion and a Maxpain point of $97,000. The Put Call Ratio stood at 0.65, reflecting a moderately bullish sentiment. Similarly, 141,000 ETH options expired with a notional value of $460 million, a Maxpain point of $3,450, and a Put Call Ratio of 0.48, indicating stronger bullish sentiment for Ethereum.

The options curve steepened across all tenors, with spreads widening between March-June and June-December contracts. However, short-term implied volatilities (IVs) have risen, reflecting increased market panic, particularly as BTC briefly fell below $91,000—a monthly low.‍

Macro Challenges and Market Outlook

The broader cryptocurrency market continues to face downward pressure from macroeconomic headwinds, including a slowdown in US stock market performance. 

Analysts point to the Federal Reserve’s cautious approach to rate adjustments and a continued pullback in equities as key drivers of market uncertainty. Greeks Live also noted the potential for additional short-term bearish hedges if conditions worsen, though long-term bullish positions may become more favorable if sentiment improves.

With US markets closed today, BTC prices are expected to consolidate between $92,000 and $95,000. A break below $92,000 could bring $90,000 into view as the next critical support level.