Crypto News: Why Crypto is down Today? Bitcoin Bears Emerge as Long-Term Sentiment Turns Negative

Key TakeawaysBitcoin’s long-term sentiment gauge flipped bearish for the first time since June 2023.DOGE, XRP, and SOL weakened, while Ether (ETH) showed resilience.Analysts cite Donald Trump’s backing of crypto in 401(k) plans as structural long-term support.Futures and options data show rising institutional preference for ETH over BTC.Bitcoin Sentiment Turns Bearish for First Time in Over a YearBitcoin’s late Wednesday rebound to $144,700 proved short-lived as a key measure of long-term sentiment flipped bearish for the first time since mid-2023. The shift comes amid growing caution in crypto markets, with DOGE, XRP, and SOL sliding alongside BTC. Ether, however, held up relatively stronger.Despite the sentiment downturn, broader market gauges remained in positive territory. The CoinDesk 20 Index rose 0.7% over 24 hours, while the CoinDesk 80 gained 0.4%.Analysts Remain Optimistic on BTC’s Structural OutlookSome analysts argued that long-term fundamentals remain intact. Donald Trump’s approval of crypto assets being included in 401(k) retirement plans is viewed as a step toward embedding digital assets deeper into U.S. capital markets.“This will shift flows from speculative to strategic, pension-style allocation,” said Jag Kooner, head of derivatives at Bitfinex. “It strengthens crypto’s structural outlook, though the effect will take time to play out.”Derivatives Show Diverging BTC and ETH TrendsIn derivatives markets, BTC and ETH futures open interest stalled above 700K BTC and 14.2M ETH, reflecting directionless trading ahead of the Jackson Hole central banking conference.CME: BTC futures’ three-month premium eased to 7%, while ETH open interest neared 2M ETH, signaling institutional preference for Ether.Deribit: BTC’s 180-day options skew fell to -0.42, its strongest demand for downside protection since June 2023. By contrast, ETH options maintained a bias toward calls.Paradigm OTC flows: Showed demand for BTC puts financed by selling calls, alongside mixed ETH activity.Meanwhile, Chainlink (LINK) futures open interest stayed near record highs as LINK climbed to $27, its strongest level since January.Volatility Steady Ahead of Fed’s Jackson HoleVolmex’s seven-day implied volatility indices held at 36% for BTC and 70% for ETH, suggesting markets are not anticipating a major volatility spike from Fed Chair Jerome Powell’s Jackson Hole speech.While Bitcoin sentiment has turned bearish for the first time in over a year, Ether’s resilience and growing institutional preference highlight shifting dynamics in the crypto market. With Powell’s remarks looming, traders may see more clarity on risk appetite in the days ahead.