BTC and ETH derivative markets for the next three months suggest…

ambcrypto.com:

The Bitcoin market has now traded lower for eight consecutive weeks, the longest continuous string of red weekly candles in history. Even, Ethereum, the largest altcoin painted the same picture. Well, such bearish movements directly or indirectly affect the returns/profit margins.

To make things worse, derivative markets suggested fear of further downside at least for the next three to six months.

Price-performance over the last 12 months has been nothing short of lacklustre for both Bitcoin and Ethereum. Indeed, this put a dent in long-term CAGR rates for Bitcoin and Ethereum. Glassnode’s weekly report published on 23 May highlighted this scenario.

This week, we analyse the diminishing return profile of both $BTC + $ETH, and what market structure, and on-chain usage tells us about the road ahead.https://t.co/5KK6xBLVUg

— glassnode (@glassnode) May 23, 2022

Considering the largest cryptocurrency, BTC traded within an approximately 4yr bull/bear cycle, often associated with the halving events. Looking at the long-term compression of returns, CAGR declined from 200%+ in 2015, to less than 50% as of this writing.

Source: Glassnode

The report added,

“In particular, we can see the marked decline in 4y-CAGR following the May 2021 sell-off, which we have argued was likely the genesis point of the prevailing bear market trend.”

In addition, Bitcoin gave a negative 30% return over the short term meaning it corrected by 1% on average on a daily basis. This negative return is quite similar to the previous bear market cycles for Bitcoin.

Source: Glassnode

Moving on to ETH, the altcoin recorded relatively