The crypto market is still struggling after a sharp drop earlier in October, dashing hopes for a recovery. On October 11, the market took a major hit when U.S. President Donald Trump announced higher tariffs on China, sparking fears across global markets. This news caused billions of dollars to vanish from crypto valuations and left investors rattled.

Since then, Bitcoin and other cryptocurrencies have seen small bounce-backs, but overall confidence remains low. The current mood is best shown by the Bitcoin Fear and Greed Index, which has fallen into the “extreme fear” zone. This level of fear has historically signaled that investors may start buying again, as panic pushes prices lower than what fundamentals support. However, history also shows that such fear can linger for weeks before a real comeback happens.

Investors are staying cautious due to growing global tensions and uncertainty around the U.S. Federal Reserve’s upcoming decision on interest rates. With key inflation data on the horizon, many traders are avoiding big trades. This has led to lower market liquidity and more dramatic price swings. Bitcoin is currently hovering around $109,000, while Ethereum is struggling to climb past important resistance levels.

Crypto research firm 10x Research recently pointed out that Bitcoin and Ethereum are moving in different directions in the options market. Their latest analysis shows that traders are mostly betting on Bitcoin to stay flat or go down, while Ethereum is showing signs of potential upside.

Looking at Bitcoin’s options market, traders seem to think the coin is more volatile than it really is. This creates opportunities for strategies like selling volatility through covered calls or short straddles. On the flip side, Ethereum’s options show that it’s less volatile than expected. That makes it attractive to those who think it could move more in the near future.

In simple terms, traders expect Bitcoin to stay steady or decline slightly, while Ethereum might be gearing up for a bigger move upward. Some investors are even selling Bitcoin call options to collect income from premiums. Meanwhile, Ethereum traders are buying put options to protect themselves from possible short-term dips.

While short-term trading strategies focus on volatility, Bitcoin miners are facing a different kind of challenge—rising debt. A new report from VanEck shows that miner debt has jumped from $2.1 billion to $12.7 billion in just one year. The reason? Heavy spending on newer, more efficient machines to keep up with competition and maintain mining power.

This ongoing pressure has been called the “melting ice cube problem.” Miners must keep upgrading their tech or risk falling behind. In the past, they raised money by selling stock. But now, with weak market conditions, many have turned to borrowing instead.

At the same time, some mining companies are shifting gears by using their facilities for artificial intelligence (AI) and high-performance computing (HPC). This change helps them bring in steadier income and makes better use of their energy resources. For example, Bitfarms raised $588 million through convertible notes to fund AI operations in North America. Others like TeraWulf and IREN have also secured large loans to grow their data centers.

VanEck’s report says this pivot toward AI doesn’t hurt Bitcoin’s network security. In fact, it can help. By using mining equipment for both AI and crypto mining during off-peak times, miners can run more efficiently and reduce waste. This dual-purpose model helps them cut costs and survive during crypto downturns.

Even though fear dominates the current market mood, experienced investors know that such fear often comes right before a strong recovery. The difference in how Bitcoin and Ethereum are being treated in the options market could be an early sign that money is starting to shift within crypto.

As Bitcoin deals with global economic pressures and miner debt issues, Ethereum looks undervalued and could be setting up for a surprise move higher. Still, with so much uncertainty—from interest rates to world events—volatility will likely continue.

For now, fear rules the market. But in crypto history, fear has often opened the door to big opportunities.