According to Wu, QCP Capital noted that the cryptocurrency market has become increasingly nervous, with the downside bias of ETH risk reversals deepening. Such tensions are expected to persist as the Iran-Israel conflict develops. Weakness in the U.S. stock market has also exacerbated risk aversion, with BTC’s perp funding flat and the back end of the curve stabilizing at double-digit yields. Alternative perpetual funds are also generally negative, indicating that much long leverage has been eliminated.