Bybit, the world’s second-largest cryptocurrency exchange by trading volume, has released the latest crypto derivatives report, published weekly with Blocks Scholes.
This week’s report highlights a significant risk-off event early in the week, as DeepSeek’s LLM announcement coincided with sharp declines across major indices and crypto markets. Despite this volatility, open interest in perpetual swaps remained stable, with funding rates momentarily turning negative before recovering. The options market also saw increased trading activity during the sell-off, even as forward-looking volatility expectations declined.
Key Insights:
BTC Open Interest Shows Minimal Movement – Despite the highest single-day trading volumes in BTC call options this month – reaching nearly $250 million during the spot price decline – volatility has continued to decline in both realized and implied terms. Short-tenor options are exhibiting lower volatility with a neutral skew, while longer-dated volatility smiles maintain a bullish bias towards out-of-the-money (OTM) calls, continuing a trend seen since the election.
ETH Options Maintain Bullish Momentum – Trading volume for ETH options has surged to its highest levels in a month, with open interest remaining heavily weighted toward calls. While the global market sell-off briefly impacted short-tenor ETH volatility smiles, ETH options have continued to trade at higher volatility levels relative to BTC. Despite ETH’s spot recovery lagging behind BTC’s, its options market remains strong.
Sources: Bybit, Block Scholes
Solana Options See Solid Open Interest – Following a price rally spurred by the launch of two presidential meme coins, Solana (SOL) has retraced alongside the broader crypto market. However, open interest in puts and calls remains elevated, with trading activity surpassing pre-rally levels. Stable levels of newly opened put options suggest strategic protective buying to hedge profitable long positions in other instruments.
The Bybit x Block Scholes Crypto Derivatives Analytics Report continues to provide actionable insights for traders and investors, offering a detailed breakdown of market trends and trading dynamics.
Access the Full Report here.
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