Dubai-based Bybit, the world's second-largest cryptocurrency exchange by trading volume, has published its latest Crypto Derivatives Analysis Report. This report provides key insights into the current state of the cryptocurrency market, covering macro events, trading signals, and changing sentiments in the derivatives space.
Rising Volatility and Bearish Sentiments
Following the recent dip in spot prices, implied volatility has spiked across the entire term structure for major cryptocurrencies, notably for ETH, where short-term 7-day option volatility has matched long-tenor contracts. The derivatives market is skewing towards out-of-the-money (OTM) puts for short-term options, indicating bearish sentiment amid subdued spot prices.
Negative Funding Rates for SOL
SOL has entered a period of consistently negative funding rates after posting positive performance at the end of August. This contrasts with other tokens like CRV, which has maintained positive rates, and TON, which shifted to negative following the arrest of Telegram’s CEO.
Dominance of BTC Put Options
Bearish sentiment is strong in the BTC options market, with puts now showing more open interest than calls. This trend is also reflected in ETH, though call options remain slightly ahead, hinting at more cautious optimism in the Ether markets.
The report highlights that short-term bearishness is increasing, with fewer traders rolling over call options after the expiration of August contracts. As spot prices stay weak, this trend reflects broader market skepticism toward positive price action shortly.
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