According to ChainCatcher, a report jointly released by Block Scholes and Bybit stated that during the recent sharp sell-off when BTC fell below $59,000, the open interest in the futures contract market remained stable, indicating that traders reduced leveraged positions, thereby limiting the risk of forced liquidation.
The report notes that this pattern has remained consistent throughout the year, reflecting the cautious approach taken by market participants during periods of heightened volatility. The report highlights the positive changes in TON funding rates following major market events, further indicating a renewed interest in leveraged positions. The report also sheds light on the market’s view on the upcoming U.S. presidential election. According to the analysis, the volatility term structure indicates a strong bullish sentiment for cash call options expiring after the election. This suggests that traders anticipate a favorable environment for crypto assets after the election.
In addition, the report observed that demand for downside protection in short-term maturities continued, reflecting cautious optimism in the market. The findings of Block Scholes and Bybit indicate that a mature crypto derivatives market is able to quickly adapt to changing dynamics. The market has remained stable even during major events, indicating that traders' confidence is growing.
