Bitcoin Tracks Stocks Higher With Crypto Traders Staying on Edge

Core Insights - Bitcoin has shown a slight recovery, edging above $88,000, but remains below the broader rebound in US equities, indicating a cautious market sentiment [1][2] - The cryptocurrency experienced a significant decline of over 20% in the past four weeks, hitting a seven-month low of $80,554 before the recent uptick [2] - Despite Bitcoin's modest gains, the overall crypto market is struggling, with traders expressing limited optimism due to a lack of broader market momentum and liquidity issues [3][4] Market Sentiment - The crypto options market reflects a bearish sentiment, with increased demand for put options at the $80,000 strike price, indicating traders are seeking downside protection [5] - The Bitcoin funding rate has turned negative, suggesting a shift in market sentiment towards bearish positions, contrasting with previous weeks where it remained positive [6] - If the current trend continues, November could mark Bitcoin's worst month since the significant downturn in 2022, which was triggered by corporate collapses in the crypto sector [7]