Bybit, the world’s second-largest cryptocurrency exchange by trading volume, has released its latest Block Scholes Crypto Derivatives Analytics Report, offering critical insights into the current state of the cryptocurrency market. This week’s report dives deep into macro events, trading signals, and the ongoing shift in sentiment within the crypto derivatives space, highlighting the significant increase in implied volatility and growing bearish outlooks across the board.
Following last week’s dip in spot prices, implied volatility has spiked across the entire term structure for major cryptocurrencies, notably for ETH, where short-term 7-day option volatility has matched long-tenor contracts. The derivatives market is skewing towards out-of-the-money (OTM) puts for short-term options, indicating bearish sentiment as spot prices remain subdued.
Key insights from the report include:
Perpetual Open Interest Falls: Open interest for perpetual contracts rose sharply after the early August sell-off but has since been consistently declining. Trading volumes have followed suit, suggesting waning confidence in the market as volatility persists.
SOL Funding Rates Turn Negative: SOL has entered a period of consistently negative funding rates after posting positive performance at the end of August. This contrasts with other tokens like CRV, which has maintained positive rates, and TON, which shifted to negative following the arrest of Telegram’s CEO.
BTC Put Options Overtake Calls: Bearish sentiment is strong in BTC options markets, with puts now showing more open interest than calls. This trend is also reflected in ETH, though call options remain slightly ahead, hinting at more cautious optimism in Ether markets.
The report also highlights that short-term bearishness is increasing, with fewer traders rolling over call options after the expiration of August contracts. As spot prices stay weak, this trend reflects broader market skepticism toward positive price action shortly.
Download the full Block Scholes Crypto Derivatives Analytics Report today to get more detailed insights.
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