Analysis suggests that Bitcoin's consolidation after falling below $90,000 reflects rising risk aversion in the crypto market.

According to Mars Finance, Bitcoin prices fluctuated and consolidated after falling below $90,000. Analysts believe this decline aligns with risk aversion in traditional markets, while risk aversion in the crypto market is rising. Derivatives data shows that Bitcoin's 30-day implied volatility (IV) rose to 44.34 on Tuesday, while open interest (OI) fell 3.25% to $28.3 billion in the past 24 hours, indicating that traders with short positions took profits during this period. However, funding rates generally remained positive throughout the sell-off. Furthermore, Zcash open interest decreased by 2.5%, while the price rose by 1.5%, suggesting that short position holders since January 8th are beginning to reduce their bearish exposure.