In a new article, CNN broke the news about a new COVID-19 variant that has been dubbed as concerning by virologists and microbiologists. The news has struck down the stock market and made a bad impact on the cryptocurrency market as well.

On the other hand, the derivatives markets for cryptocurrencies are officially overridden by the bears. According to the data analytics from Bitcoin crypto derivatives dealer Deribit, the readings from the delta-25 indicator show that the options market is moving towards a bearish sentiment. Delta-25 is a price volatility and market risk indicator.

The data from Deribits take note of the comparison of the two major options classifications against each other. The protective put options and the similar risk options have created an imbalance of the related premiums to these derivatives.

At present, the premium rates for the protective put options are moving upwards, which means that a higher bearish sentiment is developing in the market. However, if the premiums for similar risk options start to increase, it will indicate a cool off, and the bullish streak will once again be in place.

The futures market is waiting on the premium indicator returning to the positive readings. The technical analysts use the difference between the long-term futures contracts and the spot market futures. If the difference between the two aforementioned metrics stays within 5% to 15%, it is considered a healthy market state is also known as contango.

However, if the difference starts to inch towards the negative values, it means that bearish sentiment is taking over, and the market is shifting to the backwardation phase. At present, the primary futures risk metric is resting at 11%. It can be dubbed as the start of the incline, but technical experts claim that it is stable for the time being. Some technical experts argue that investors hold 60% stakes in the open interest options, and there are no valuable stakes betted on the sell options above $60K till year-end. Therefore, the bearish sentiment and 25-Delta indicator from the Deribit is not very worrisome.