Bybit x Block Scholes Derivatives Report: Mixed Market Signals As ETH Leads Over BTC
In Brief
Bybit releases a new derivatives analytics report highlighting a decline in ETH perpetual positions, while ETH maintains a lead over BTC in options open interest.
Cryptocurrency exchange Bybit announced the release of a new derivatives analytics report, created in collaboration with Blocks Scholes, which highlights a decline in ETH perpetual positions while ETH maintains a lead over BTC in terms of options open interest.
Analysts observed the effects of Bitcoin’s pullback from the $100,000 level and Ethereum’s retreat from $4,000 on derivatives markets, with the drop in ETH open interest attributed to weaker spot prices. Despite remaining generally optimistic, investors moderated their expectations, as indicated by lower funding rates.
The report also examines various indicators across the futures, perpetual, and options markets, comparing them to levels seen prior to the US election.
Bybit Derivatives Analytics Report Highlights ETH Perpetual Yield Gains Over BTC And Reset From Bullish Excess In Funding Rates
Among the key insights highlighted in the report, Bybit notes that the ETH perpetual open interest has declined sharply due to the liquidation of overleveraged long positions, which led to a drop in funding rates. In contrast, BTC perpetual activity remained stable throughout December 2024, with a brief spike during Bitcoin’s surge above $100,000 last week.
Meanwhile, regarding funding rates, they have stabilized at around 0.01% after a wave of liquidation in perpetual swaps. This reset followed the notable unwinding of leveraged long positions, signaling a more cautious market sentiment. Despite the decline, funding rates remain neutral, suggesting a recalibration of leveraged exposure without a strong bearish outlook following the flash sell-off.
Open interest in ETH continues to show bullish trends, especially with year-end expirations approaching. However, trading volumes have decreased, likely due to recent spot price movements. ETH options display an inverted term structure, differing from BTC’s flat pattern, as a result of realized volatility surpassing market expectations for future volatility.
Bybit is one of the largest cryptocurrency exchanges globally by trading volume, with a user base surpassing 50 million. The platform caters to both cryptocurrency investors and traders, offering a range of features such as a high-speed matching engine, 24/7 customer support, and multilingual services to provide a smooth experience for its international community. Recently, Bybit celebrated its 6th anniversary, marking a milestone in its journey of innovation, adaptability, and growth within the cryptocurrency industry.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
