The combined weekly report interprets trends and indications from futures, options, perpetual contracts, and spot trading volumes.
Report shows ETH perpetual positions are retreating as it continues to dominate BTC in options open interest.
In partnership with Blocks Scholes, Bybit, the second-largest cryptocurrency exchange globally in terms of trading volume, released a new derivatives analytics report that shows ETH perpetual positions are retreating as it continues to dominate BTC in options open interest.
The drop in ETH open interest, which analysts attributed to lackluster spot prices, and the retreat of BTC from the $100K level and ETH from $4K had an influence on derivatives markets, according to last week’s statistics. Although investors remained optimistic, their zeal was tempered, as seen by decreased funding rates.
Additionally, the report examines indications from the options, perpetuals, and futures markets that are compared to levels prior to the U.S. election.
Important Takeaways:
Perpetuals: ETH yields gains to BTC
Due to the liquidation of overly leveraged long positions, which caused funding rates to plummet, ETH perpetual open interest has drastically decreased. On the other hand, Bitcoin perpetual activity was consistent until December 2024, with a slight uptick following last week’s climb beyond $100K.
Funding rates: the reset from bullish excess
Following a wave of liquidation of overly leveraged long positions in perpetual swaps, funding rates for perpetuals have leveled out at around 0.01%. This change reflected more cautious market sentiment and came after a large unwinding of leveraged long positions. Funding rates are still neutral despite the drop, suggesting that leveraged exposure has adjusted without a strong negative mood after the flash sell-off.
Options: ETH on an outperforming streak over BTC
Sources: Block Scholes and Bybit
As the year draws to a close, open interest in ETH continues its upward trajectory. However, trade volumes have decreased due to the recent fluctuation in spot prices. ETH options, which are driven by realized volatility that exceeds expectations for the future, have an inverted term structure as opposed to BTC’s flat form.
Get the Complete Report:
The combined weekly report interprets trends and indications from futures, options, perpetual contracts, and spot trading volumes. Go here to read the whole report.
