Bybit x Block Scholes: Weekly Derivatives Insights Show Drop in Volatility Hedging
Mar 24, 2025

Bybit, the world’s second-largest cryptocurrency exchange by trading volume, released the latest weekly crypto derivatives analytics report in collaboration with Block Scholes, offering a comprehensive look at macro trends, trading signals, and market sentiment across the digital asset landscape.

This week’s report highlights a shift in sentiment across derivatives markets, as global asset prices stabilize and crypto assets maintain a high correlation with U.S. equities. Bitcoin (BTC) remains above $85,000, while Ethereum (ETH) has reclaimed the $2,000 level. Despite this recovery in spot prices, derivatives activity remains subdued, with negative funding rates persisting for major tokens including BTC, ETH, and Solana (SOL).

Key insights:

Market calms, short-term protection drops

The recent pause in the broader sell-off has cooled demand for short-dated protective puts, as realized volatility declines. While ETH’s implied volatility term structure has normalized, BTC’s remains flat, reflecting lingering caution. Overall, the quieter spot market has led to a more subdued options environment.

ETH volatility declines Lower realized volatility in ETH has reversed its at-the-money implied volatility term structure, pushing volatility expectations down. Options activity has yet to recover to late-February levels, with modest open interest in longer-dated contracts. As ETH regains the $2K mark, demand for call options now exceeds that for puts, signaling a potential shift toward bullish positioning.

The weekly Bybit x Block Scholes report continues to provide data-driven insights across spot, futures, perpetual, and options markets, empowering traders and institutional investors with actionable intelligence.

Access the full report

For detailed insights, readers may download the full report.

#Bybit / #TheCryptoArk /#BybitResearch

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