Bybit, the world’s second-largest cryptocurrency exchange by trading volume, in collaboration with Blocks Scholes, releases a new report on the state of crypto derivatives. The report reveals cautiously optimistic market sentiment in the lead-up to the U.S. presidential election, alongside fluctuations in at-the-money (ATM) implied volatility. However, analysts believe that investors who may be anticipating BTC price to reach the next major milestone mark may want to temper expectations until after the election dust settles.
The report also illustrated a tangled relationship between BTC price and election odds. As the divergence between Trump’s and Harris’s odds widened, BTC spot prices were on the rise along with Trump’s improved winning chance but has recently pulled back.
Key Insights:
Strong funding rates across tokens: From DOGE to BTC, all tokens are showing consistent and positive funding rates across the board for perpetual contracts. Traders are accumulating long positions, aiming for leveraged exposure in anticipation of the upcoming election. As investors increase their long-term exposure, the markets crescendo towards bullish sentiments.
BTC calls drove up implied volatility: BTC call options were leading in open positions and contributed to the upward trend of 14-day tenor options in the previous week. However, other tenors have generally seen downward pressure.
Plunging Implied Volatility: Large movements in 7-day implied volatility shaped very steep term structures for ETH options. In contrast with the calm in ETH spot prices and low short-dated realized volatility, the current landscape demonstrates heightened anticipation of the impending U.S. election and overall optimism with growing open positions of ETH call options.
To Access the Full Report:
Block Scholes x Bybit Crypto Derivatives Analytics Report (2024.10.23)
#Bybit / #TheCryptoArk /#BybitResearch
About Bybit
Bybit is the world’s second-largest cryptocurrency exchange by trading volume, serving over 50 million users. Established in 2018, Bybit provides a professional platform where crypto investors and traders can find an ultra-fast matching engine, 24/7 customer service, and multilingual community support. Bybit is a proud partner of Formula One’s reigning Constructors’ and Drivers’ champions: the Oracle Red Bull Racing team.
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