Bybit, the worlds leading cryptocurrency exchange by trading volume, has partnered with Block Scholes to release its latest weekly crypto derivatives report based on trading volume data. The report provides the latest outlook on the dynamics and future trends of the derivatives market on the eve of Trumps inauguration. In the absence of major news, the overall market has regained its rhythm, and the spot market has performed steadily in the second week of the year.
Data shows that after the markets sluggish performance during the winter break, realized volatility has outperformed implied volatility, and market activity has clearly rebounded. Although the trading volume of perpetual contracts has returned to normal levels, market participants still seem to be waiting for clearer catalyst information related to the crypto market in order to make more decisive arrangements.
Key market insights:
1. Funding Rates Indicate Increased Long Positions: Despite continued volatility in spot prices, perpetual swap funding rates remain in positive territory, indicating continued demand for long positions. While Bitcoin (BTC) and Ethereum (ETH) are leading the market, CRV shows a steady bullish rate. In contrast, ATOM is down 30% from its intra-month high.
2. BTC options reflect long-term market optimism: After the holiday slump, Bitcoin (BTC) realized volatility has returned to match the implied level. Although short-term options show increased hedging activity, long-term contracts maintain a bullish bias, with implied volatility maintained in the 50 range and open interest between call options and put options remaining balanced.
3. Volatility patterns turn bullish after CPI: Recent CPI data triggered changes in volatility smiles for BTC and ETH, with OTM call options showing higher implied volatility than put options as Bitcoin approaches $100,000. This marks a reversal from last week’s bearish short-term sentiment and shows the market’s high sensitivity to macro factors.
Source: Bybit, Block Scholes
For a detailed analysis of volatility trends, funding rates and options market dynamics , the report can be downloaded here.
About Bybit
As the worlds leading cryptocurrency exchange by trading volume, Bybit serves more than 60 million global users. Since its establishment in 2018, Bybit has been committed to creating a simpler, open, and equal ecosystem, redefining the openness of the decentralized world. We are deeply involved in the Web3 field, establishing strategic alliances with top blockchain protocols, providing solid infrastructure, and promoting on-chain innovation. With secure and reliable asset custody, diversified trading markets, intuitive user experience, and cutting-edge blockchain tools, Bybit has successfully built a bridge between traditional finance and decentralized finance, helping developers, creators, and enthusiasts to fully tap the unlimited potential of Web3.
Welcome to Bybit.com to explore the future of decentralized finance.
For more information about Bybit, please visit Bybit Press
For media inquiries, please contact: media@bybit.com
For the latest news, please follow: Bybit’s community and social media
