The crypto derivatives market is showing signs of recovery following the Federal Reserve’s recent rate cut. A new report from Bybit and Block Scholes highlights key trends in futures, options, and perpetual contracts.
Bybit, the second-largest cryptocurrency exchange by trading volume, has partnered with quantitative finance firm Block Scholes to release an in-depth crypto derivatives analytics report. The report analyzes the crypto market’s response to the Federal Reserve’s 50 basis point rate cut on September 18, 2024, and explores key trends across futures, options, and perpetual contracts.
Following the rate cut, both spot and derivatives markets have responded positively. Bitcoin (BTC) and Ethereum (ETH) prices have risen, with open interest in futures and perpetual swaps remaining robust. Funding rates have mostly stayed positive, and BTC call open interest has been gradually increasing. The volatility smile for BTC and ETH calls has also widened, reflecting increased investor confidence.
Key Findings from the Report:
– Futures Market: Despite a decrease in trading volumes, open interest remains stable, indicating that traders are holding their positions.
– Perpetual Swaps: Open interest and trading volumes for perpetual swaps have stayed steady, suggesting consistent trader engagement.
– Options Market: Although BTC options activity has leaned towards puts over calls, open interest for calls is slowly recovering. Implied volatility for short-term options has dropped since the Fed’s rate cut, signaling a shift towards bullish sentiment.
Bybit continues to provide comprehensive market insights and trading tools, helping users make well-informed decisions in the evolving crypto landscape.
For more information and to download the full report, please visit: https://learn.bybit.com/crypto-insights/bybit-x-block-scholescrypto-derivatives-analytics-report-sep-25-2024/
About Bybit
Bybit is one of the world’s leading cryptocurrency exchanges, ranking as the second-largest by trading volume. Since its launch in 2018, Bybit has grown to serve over 50 million users globally, offering a professional trading platform with an ultra-fast matching engine. Bybit also provides 24/7 customer support and multilingual community assistance, ensuring a seamless experience for crypto investors and traders. The exchange is a proud partner of Oracle Red Bull Racing, the reigning Formula One Constructors’ and Drivers’ champions. Learn more at Bybit.
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