Crypto Market Stays Defensive Amid ETF Flows, Regulation Concerns

Bitcoin and Ethereum traders remain cautious as sentiment stays defensive, with one-week BTC put-call skew near 16% indicating strong demand for downside protection.

The recent decline in ETF flows has also weighed on the market, with Citi cutting its targets after noting a $3.3B year-to-date decrease in bitcoin ETF demand.

Options positioning is shifting lower as traders repricing upside targets after market momentum lost steam, with the most crowded BTC call strike moving down by $10,000.

The Clarity Act remains a significant watch item for crypto regulation, with prediction markets pricing only a 41% chance of passage this year.