$BTC is in full stress mode. Perp funding deeply negative at -20.8%, front-end carry inverted, and realized vol exploding above 100% signal forced deleveraging and panic hedging. Skew is extremely bid for puts, but longer-dated forwards still hold contango, hinting at stabilization once liquidation pressure fades.
$ETH is even more stretched. Funding negative, realized vol at crisis levels, and very heavy downside skew show aggressive protection and capitulation. Front-end IV is elevated but still lagging realized, meaning fear is real, not priced out yet.
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Bottom line: This is a classic washout phase. Flows are defensive and mechanical. Watch for funding normalization and vol compression as early signs the sell pressure is exhausting.