Bybit Derivatives Analysis: Cryptocurrency Market Changes

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by Giorgi Kostiuk

2 years ago


Bybit, the world's second-largest cryptocurrency exchange by trading volume, has released a new crypto derivatives report, analyzing current market trends. The report focuses on changes in liquidity and volatility.

Liquidity Decline in Perpetual Swaps Market

In December 2024, the perpetual swap market experienced a significant decline in liquidity. Trading volumes decreased, leading to lower realized volatility in the market. However, open interest remained stable compared to levels before the great expiration of options contracts in December 2024.

Disparity in Volatility for ETH and BTC

The ETH options market indicates a clear preference for call options, while BTC's open interest is rebalancing following the December expiration. Notably, there is a sharp divergence between implied and realized volatility.

Increased Traction of ETH Call Options

There has been a reshuffling in ETH open interest, with call contracts gaining traction after December. However, the decline in realized volatility has caused traders to remain cautious.

Recent changes in the derivatives market indicate growing uncertainty and caution among investors. Despite recent calm, volatility and macroeconomic factors continue to significantly impact the market.

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