The cryptocurrency exchange Bybit, in collaboration with Block Scholes, has released a new report on the crypto derivatives market, focusing on the creation of a strategic BTC reserve and its market impact.
Impact of Strategic BTC Reserve
In the first week of March, the crypto market reflected the news of the creation of the US strategic BTC reserve. The market shifted towards bearish territories as investors opted for short-term protective options to mitigate potential risks.
Stability in Funding Rates
Following the president's announcement on March 2, spot prices for cryptocurrencies surged, yet the funding rates remained stable. This suggests a balanced demand for long positions.
Changes in ETH and SOL Markets
Enthusiasm around ETH waned due to tariff discussions, leading to an increase in realized volatility. SOL options open interest declined despite its inclusion in the reserve.
The Bybit and Block Scholes report emphasizes the impact of strategic decisions on the crypto market. Stable rates and options volatility serve as market indicators.
