The options markets of both Bitcoin and Ethereum are showing divergent trends, according to crypto exchange Bybit.
In its latest crypto derivatives report, the crypto reported that Bitcoin’s open interest began rebalancing after December’s option expirations, while Ethereum saw rising demand for call options. It noted that this divergence between implied and realized volatility suggests traders are preparing for potential market disruptions despite the current calm. For Bitcoin, implied volatility remains at 57% for one week, signalling heightened risk expectations.
Bybit’s analysis also pointed out that Bitcoin’s retreat from the $100,000 milestone might be driven by growing macroeconomic uncertainty and shifting investor sentiment ahead of Donald Trump’s inauguration on January 21.
The crypto exchange noted that broader economic factors have impacted risk assets, including cryptocurrencies, with traders adopting a cautious approach. Its report reveals a slowdown in the perpetual swap market during December 2024, as holiday trading volumes declined and realized volatility dropped. However, open interest in perpetual contracts remained stable, reflecting conservative positioning and minimal hedging activity.
This report comes on the heels of Bybit and Block Scholes’ previous analysis that revealed that Bitcoin perpetual swap open interest remained steady during year-end expirations, defying expectations of significant price fluctuations. They noted that traders avoided significant leverage, keeping the call-put balance neutral as most expired open interest was not reinvested. This cautious sentiment underscores limited market activity compared to early December 2024.
On another front, Bybit announced Xterio (XTER) as its latest Launchpad project. Xterio is an AI-powered blockchain gaming platform built on the Layer 2 OP Superchain, with over $80 million in funding from backers like Binance Labs and Makers Fund. Bybit is offering early access to Xterio through its Launchpad, with 7.5 million XTER tokens available as rewards. Users can subscribe using MNT or participate in a lottery using USDT to access the XTER pools.
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