Bybit, in collaboration with Block Scholes, released a new weekly report that highlights key changes in the crypto derivatives market ahead of Donald Trump's inauguration. The report shows how markets adapt in the absence of major news.
Strengthening of Long Positions
Perpetual swap funding rates remain positive, indicating sustained demand for long positions. BTC and ETH lead the market, while CRV shows consistent growth, contrasting with ATOM which decreased by 30% over the month.
Long-Term Optimism in BTC Holders
BTC volatility has normalized after the holiday lull, with implied volatility levels reaching 50%, reflecting market optimism. Long-term contracts maintain a bullish outlook, supported by balanced open interest between calls and puts.
Volatility Increases after CPI Release
Recent CPI data triggered changes in BTC and ETH volatility, with out-of-the-money options becoming pricier and bullish sentiment once again dominating.
The report highlights investors' focus on macroeconomic factors and their impact on the cryptocurrency market. Positive expectations and volatility induced by the report suggest potential market dynamism in the future.
