Bybit, the world’s second-largest cryptocurrency exchange by trading volume, has released its latest Bybit x Block Scholes Crypto Derivatives Analytics Report, in collaboration with Block Scholes. The report provides an in-depth analysis of crypto derivatives, macroeconomic influences, and trader sentiment following the major market liquidation in October.
Key Highlights:
Cautious Derivatives Market After Liquidation
A historic $6 billion liquidation on October 10, triggered by renewed U.S.–China trade tensions, led to sharp deleveraging across perpetual swap markets. Although diplomatic progress followed with a signed trade deal, sentiment remained fragile after Federal Reserve Chair Jerome Powell’s hawkish comments at the FOMC press conference. Bitcoin (BTC) fell to $107,000, while short-term put-call skews turned bearish, signaling renewed risk aversion.
Open Interest Flatlines Below $10 Billion
Notional open interest in perpetual contracts has remained stagnant since the $19 billion liquidation, with traders showing limited willingness to re-enter positions. Despite record highs in U.S. equities, crypto markets continue to move independently of broader risk-on sentiment, with BTC and ETH prices confined to the $105,000–$115,000 range.
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Options Activity Indicates Ongoing Hedging Demand
In contrast to perpetual markets, BTC options open interest has steadily increased, suggesting continued hedging and speculative strategies. Elevated at-the-money implied volatility and consistent demand for short-term puts reflect traders’ defensive stance.
WLFI Token Volatility After Airdrop
The DeFi protocol World Liberty Financial (WLF) saw its governance token WLFI rebound 25 percent to $0.15 following an 8.4 million WLFI airdrop to early users. Although the rebound improved sentiment, perpetual funding rates remain unstable, indicating persistent market uncertainty.
The report concludes that the crypto derivatives market is cautiously regaining stability after significant deleveraging. Participants continue to prioritize risk management over aggressive exposure, while select DeFi rebounds point to renewed speculative interest. With macroeconomic headwinds — including monetary policy shifts and geopolitical developments — still shaping sentiment, traders are maintaining a defensive outlook as they await clearer market direction.
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