Dubai, United Arab Emirates, January 17, 2025, PakGazette
Bybit, the world’s second-largest cryptocurrency exchange by trading volume, published the latest weekly crypto derivatives report in collaboration with Block Scholes. The report provides a latest overview of movements and signals in the derivatives market in the run-up to Trump’s inauguration. The group found its rhythm in the absence of major news events, and the spot market held firm in the second week of the year.
The data highlighted that observed volatility has caught up with implied volatility after the winter break, indicating a more energized market. Trading volumes in perpetual contracts have normalized, although participants appear to be waiting for clearer crypto catalysts for more decisive positioning.
Key ideas:
Funding rates indicate strength in long positions: Perpetual swap funding rates remained in positive territory despite fluctuations in spot prices, indicating sustained demand for long positions. While BTC and ETH lead the market direction, CRV showed consistently bullish rates, in contrast to ATOM, which fell 30% from monthly highs.
BTC options reflect long-term optimism: BTC realized volatility has recovered to match implied levels after the Christmas break. While short-term options show greater covering activity, longer-term contracts maintain a bullish bias with high implied volatility in the mid-50s, supported by balanced open interest between calls and puts.
Volatility patterns turn bullish after CPI: Recent CPI data sparked a shift in BTC and ETH volatility smiles, with OTM calls showing higher implied volatility than puts near BTC’s $100,000 level. This marks a reversal of the previous week’s short-term bearish sentiment, highlighting the market’s sensitivity to macro factors.
Sources: Bybit, Block Scholes
The full report, which includes a detailed analysis of volatility trends, funding rates, and options market dynamics, is available for download.
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About Bybit
Bybit is the world’s second largest cryptocurrency exchange by trading volume, serving a global community of over 60 million users. Founded in 2018, Bybit is redefining openness in the decentralized world by creating a simpler, more open and equal ecosystem for everyone. With a strong focus on Web3, Bybit strategically partners with leading blockchain protocols to provide robust infrastructure and drive on-chain innovation. Renowned for its secure custody, diverse marketplaces, intuitive user experience, and advanced blockchain tools, Bybit bridges the gap between TradFi and DeFi, allowing builders, creators, and enthusiasts to unlock the full potential of Web3. Discover the future of decentralized finance at Bybit.com.
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