The latest report from Bybit, the world's second-largest cryptocurrency exchange, highlights key events in the crypto markets amid the US-Vietnam trade deal.
Current Trends in Crypto Derivatives Market
According to the report, BTC climbed above the $110,000 mark while ETH exceeded $2,500, leading to increased short-term volatility expectations. The report also points out interesting anomalies in the derivatives market, including negatively skewed SOL funding rates despite recent ETF approvals.
BTC and ETH Volatility Dynamics
The BTC options market experienced an unusual period of calm, with 7-day implied volatility falling to 26%, the lowest level in two years. However, following the rally on July 2, volatility surged back to 35%. Meanwhile, ETH significantly outperformed BTC, rising from $2,400 to over $2,500, driving up ETH's 7-day implied volatility by a 10-point increase.
Changes in ETH Options Market
The volatility term structure for ETH and BTC remained relatively balanced for most of the week. ETH options displayed a more pronounced shift, now pricing a 1.3% premium for out-of-the-money calls, completely reversing from the prior -1.9% put skew.
The Bybit report reflects significant changes in the crypto market and may serve as an indicator of future trends, especially in the context of increased volatility following key trade agreements.
