Bybit x Block Scholes Report: Crypto Derivatives Market Trends and Insights

Crypto Derivatives Market Shows Cautious Recovery

The latest weekly crypto derivatives analytics report by Bybit and Block Scholes reveals a mixed sentiment in the cryptocurrency market. Despite global asset prices stabilizing and crypto assets maintaining a strong correlation with U.S. equities, derivatives activity remains subdued. Bitcoin (BTC) holds above $85,000, while Ethereum (ETH) has reclaimed the $2,000 mark. However, negative funding rates persist for major tokens, including BTC, ETH, and Solana (SOL).

Key Insights: Market Sentiment and Volatility

1. Calm Markets and Declining Volatility
   The broader sell-off pause has reduced demand for short-dated protective puts, as realized volatility declines. ETH’s implied volatility term structure has normalized, while BTC’s remains flat, indicating lingering caution. The quieter spot market has led to a more subdued options environment.

2. ETH Volatility and Options Activity
   Lower realized volatility in ETH has reversed its at-the-money implied volatility term structure, pushing expectations down. While options activity hasn’t fully recovered to late-February levels, there’s modest open interest in longer-dated contracts. With ETH regaining the $2,000 level, demand for call options now surpasses puts, signaling a potential bullish shift.

Strategic Insights for Traders

The Bybit x Block Scholes report provides actionable intelligence across spot, futures, perpetual, and options markets. It empowers traders and institutional investors with data-driven insights to navigate the evolving crypto landscape. For detailed analysis, readers can download the full report.

About Bybit

Bybit, the world’s second-largest cryptocurrency exchange by trading volume, serves over 60 million users globally. Founded in 2018, Bybit is committed to creating a simpler, open, and equal ecosystem in the decentralized world. With a strong focus on Web3, Bybit partners with leading blockchain protocols to drive on-chain innovation and bridge the gap between TradFi and DeFi. Renowned for its secure custody, diverse marketplaces, and advanced tools, Bybit empowers users to unlock the full potential of Web3.