The latest insights on ETH and BTC derivatives markets with Bybit and Block Scholes. Explore mixed signals in perpetuals and options activity as ETH sustains its lead over BTC.
Bybit, the world’s second-largest cryptocurrency exchange by trading volume, in collaboration with Block Scholes, has released a new derivatives analytics report. The report examines recent trends in perpetuals, futures, and options markets, highlighting ETH’s retreat in perpetual positions while maintaining its lead over BTC in options open interest.
Perpetuals: ETH Yields Ground to BTC
The report indicates a significant drop in ETH perpetual open interest due to the liquidation of overleveraged long positions. This has resulted in lower funding rates, reflecting reduced market enthusiasm. Meanwhile, BTC perpetual activity has remained stable through December 2024, showing resilience even during BTC’s brief surge above $100K last week.
Funding Rates: Resetting from Bullish Excess
Funding rates for perpetual swaps have stabilized around 0.01%, following the liquidation of leveraged long positions. This recalibration signals cautious optimism among investors, as funding rates remain neutral without suggesting extreme bearish sentiment after the recent market correction.
The report also benchmarks market indicators against pre-U.S. election levels, providing a comprehensive overview of trends in the futures, perpetuals, and options markets.
Options: ETH on an outperforming streak over BTC
ETH open interest continues to reflect bullish trends as year-end contract expirations approach. Despite a slowdown in trading volumes driven by recent spot price movements, ETH options exhibit an inverted term structure, contrasting with BTC’s flat shape. This divergence is fueled by realized volatility surpassing forward-looking expectations.
Gain a deeper understanding of spot trading volumes, futures, options, and perpetual contracts with the joint weekly report from Bybit and Block Scholes.
About Bybit
Bybit is a leading cryptocurrency exchange, ranking as the world’s second-largest by trading volume and serving a global community of over 50 million users. Founded in 2018, Bybit offers a professional trading platform equipped with an ultra-fast matching engine, 24/7 customer support, and multilingual community resources, ensuring a seamless trading experience for crypto enthusiasts and investors.
As a proud partner of the Oracle Red Bull Racing Team, Formula One’s reigning Constructors’ and Drivers’ champions, Bybit demonstrates its commitment to innovation, precision, and excellence on both the track and in the crypto space.
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