Bitcoin prices fell 5.3% between October 9 and 10, falling to a three-week low of $58,900. The market correction was mainly driven by higher-than-expected consumer inflation data released by the United States, and investors began to worry that the Federal Reserve might not be able to continue its accommodative interest rate cuts. Bitcoin has also come under pressure as market concerns about a recession have intensified, especially against the backdrop of an unexpected increase in initial jobless claims in the United States.

Market sentiment was affected by multiple factors, including Cumberland DRW being sued by the U.S. Securities and Exchange Commission for alleged "unregistered dealers." In addition, the U.S. spot Bitcoin ETF has seen two consecutive days of outflows totaling $59 million, further weakening the market's short-term bullish sentiment on Bitcoin.

Looking at the Bitcoin derivatives market, key indicators are showing signs of weakness. For example, the Bitcoin futures basis rate fell below the neutral level of 5% on October 10. This decline in the basis rate means that traders have less demand for leveraged buying, which has also been a precursor to major Bitcoin declines in the past - the last time such a situation occurred, the price of Bitcoin fell by more than 24%.

However, judging from the data from the options market, the 25% delta deviation remains close to zero, indicating that whales and market makers have not significantly changed their risk-reward expectations. Therefore, while the sharp drop in the basis in the futures market may reflect the unexpected liquidation of some leveraged longs, the overall sentiment does not show a clear bearish signal. In other words, while Bitcoin may continue to face selling pressure in the short term, this does not mean a large-scale price crash. $BTC