Last updated on December 18th, 2025 at 01:45 pm
Quick Breakdown
- Bitcoin and Ethereum staged a strong early-December rebound, with BTC back above $94,000 and ETH reclaiming $3,000 after a Bank of Japan–driven selloff.
- Market sentiment improved after Vanguard opened access to crypto ETFs and mutual funds, boosting confidence even as perpetual futures open interest stayed below pre-liquidation levels.
- Options traders reduced their demand for downside protection, with bearish put premiums easing on both BTC and ETH, signalling stabilizing sentiment, though not yet a bullish shift.
The crypto market is showing early signs of stabilization after a turbulent start to December, with Bitcoin recovering above $94,000 and Ethereum regaining $3,000. The rebound follows a sharp selloff on December 1 during Asian trading hours, triggered by hawkish signals from the Bank of Japan and a spike in Japanese government bond yields.
Fresh momentum returned after Vanguard opened its platform to crypto ETFs and mutual funds, an unexpected move that traders interpreted as a major step toward mainstream financial integration. The decision helped lift overall sentiment, contributing to a broader recovery across spot and derivatives markets.
— Bybit (@Bybit_Official) December 9, 2025
Perpetual futures activity lags behind spot recovery
Despite the bounce in spot prices, perpetual futures remain notably subdued. Open interest is still well below levels seen before the October 10 liquidation event. The December 1 drop pushed Bitcoin as low as $83,000, but it did not spark a large wave of forced liquidations
As Bitcoin reclaimed the $93,000–$94,000 range, some traders cautiously re-entered positions, pushing perpetual open interest back to just under $9 billion. Funding rates, however, suggest ongoing hesitancy, with several altcoins showing signs of continued weakness as traders limit exposure to high-beta assets.
Options markets ease bearish bias but remain neutral
Options markets have reflected the shift in sentiment more clearly. Early December saw pronounced demand for downside protection, with BTC and ETH short-dated volatility smiles showing steep premiums for out-of-the-money puts.
That skew has since moderated. BTC put options now carry a milder bearish premium of around 4%, while ETH puts sit near 2%. The reduction signals that traders are no longer bracing for immediate declines, though they remain cautious.
Renewed optimism builds as bitcoin extends weekly gains
Bitcoin has now surged past $91,000, marking a 14% gain over the past week and signalling a tentative return of optimism as volatility fears ease. According to Bybit, traders are watching whether the recovery can sustain momentum and reclaim the $95,000 psychological and technical threshold.
If you would like to read more articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
