The new Bybit and Block Scholes report, released on April 15, 2025, discusses the influence of tariff policies from the Trump administration on the cryptocurrency market, specifically on BTC options.
Impact of Tariffs on BTC Open Interest
Bybit analysts noted that the cryptocurrency market remained stable until the changes in tariff policies. Following 'Liberation Day', significant market fluctuations occurred, leading to sharp declines in Bitcoin and Ethereum prices from their March peaks. The escalation of the tariff conflict negatively affected market confidence.
Funding Rate Dynamics Amid Uncertainty
Funding rates on Bybit perpetual swaps initially increased but later returned to previous levels. Growing market sentiment shifted into trader doubts due to unclear trade policies. The cryptocurrency market found itself in uncertainty, causing the BTC derivatives market to lack direction.
Growing Interest in Put Options amid Market Instability
BTC's price fell below $75,000, prompting traders to adopt risk protection strategies more actively. The volume of put options continued to rise above that of call options, creating a significant influence on open interest. The current put-to-call ratio surpasses figures recorded during the 2023 banking crisis, indicating heightened interest in protection against market declines.
The Bybit and Block Scholes analysis highlights the significant impact of tariffs on the cryptocurrency market and the shifting expectations of participants. Current volatility and rising interest in put options demonstrate the ongoing concerns of traders regarding future market trends.
