Bitcoin (BTC) and Ethereum (ETH) derivatives markets are flashing mixed signals as options traders adopt a slightly bearish stance, even as perpetual futures funding rates remain firmly positive, according to Bybit’s latest derivatives report.
BTC has traded in a tight range between $115,000 and $120,000, briefly dipping to the lower bound on July 25 after Galaxy Digital sold 80,000 BTC linked to a “Satoshi-era investor.” Although BTC quickly rebounded, it has yet to break through the $120,000 ceiling. On the same day, open interest in BTC and altcoin perpetual contracts surged past $15.5 billion, signaling heightened trading activity.
In options markets, ETH’s flat term structure stands in contrast to BTC’s upward-sloping volatility curve. Short-term volatility smiles for both BTC and ETH have shifted toward out-of-the-money (OTM) puts, indicating a bearish-to-neutral outlook. ETH’s 7-day put-call skew has dropped to −3.6%, while BTC’s 14-day options show a slight 0.5 percentage-point tilt toward OTM puts.
Despite this cautious options positioning, perpetual futures remain overwhelmingly bullish. Funding rates for BTC, ETH, DOGE, and XRP have stayed positive since early July, with DOGE and XRP climbing above 0.03%. ETH, in particular, has seen steady inflows into Spot ETH ETFs, which added $218.6 million on July 29 alone.
Altcoins delivered mixed performance over the past week. XRP fell 11% and SOL declined 10% after a brief “altcoin season” sparked by a dip in BTC dominance faded. ETH and TRON defied the broader trend, posting gains of 3% and 5% respectively.
While ETH has eased slightly to just under $3,800 after a recent peak, options volume remains robust above $120 million, with $100 million more open interest in calls than puts. In addition to this development, Bybit has released its latest decentralized finance (DeFi) report, revealing that real-world assets (RWA) and decentralized exchanges (DEXs) are now driving the next wave of growth in DeFi.
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