Bybit, the world’s second-largest cryptocurrency exchange by trading volume, released the latest weekly crypto derivatives analytics report in collaboration with Block Scholes. The report provides insights into macroeconomic developments, the state of crypto spot and derivatives markets, and emerging trading signals.
Key insights
Since bottoming out on March 11, crypto asset prices have climbed steadily over a two-week period, with BTC briefly surpassing $87,000 and ETH recovering above $2,000. XRP has remained relatively stable, while BTC, ETH, and SOL continue to trade below their year-opening levels. SOL, which hit an all-time high in January following Cboe’s Solana Spot ETF filing, also remains down year-to-date. While the broader market has shown signs of recovery, derivatives activity reflects lingering caution. Demand for BTC and ETH put options remains elevated, signaling ongoing hedging behavior.
Cautious rebound in perpetuals
Perpetual open interest stayed flat for most of the week, underscoring a cautious, risk-off tone. A brief market rebound saw BTC rise to $88,000 a two-week high triggering modest increases in perpetual trade volume, primarily driven by BTC. Still, volumes remain significantly below those recorded earlier this month, when U.S. President Donald Trump proposed a national crypto reserve centered on the four largest tokens.
Funding rates suggest persistent bearish sentiment
Despite lower realized volatility and positive price movement among major assets, BTC and ETH perpetual contracts continued to post negative funding rates. This indicates that short sellers are still paying long positions, an ongoing sign of bearish sentiment. In contrast, large-cap altcoins showed more mixed positioning, with funding rates fluctuating between positive and negative without a clear directional bias.
Volatility retreats to yearly lows
Implied volatility declined by 3 to 5 points over the past week, with 30-day options now trading at their lowest levels since the beginning of the year. Realized volatility is also nearing the 30% floor last seen in February. As typically observed in low-volatility periods, options market activity has slowed, with open interest remaining low and relatively balanced between puts and calls. Around $40 million in options expired during the week.
