bullish

Bitcoin

Block

<ul class="wp-block-list">
 <li>The combined weekly report interprets trends and indications from futures, options, perpetual contracts, and spot trading volumes.</li>
 <li>Report shows ETH perpetual positions are retreating as it continues to dominate BTC in options open interest.&nbsp;</li>
</ul>
In partnership with Blocks Scholes, <a href="https://www.bybit.com/en/press" target="_blank" rel="noopener noreferrer nofollow">Bybit</a>, the second-largest cryptocurrency exchange globally in terms of trading volume, released a new derivatives <a href="https://learn.bybit.com/crypto-insight/bybit-x-block-scholes-crypto-derivatives-analytics-report-dec-11-2024/" target="_blank" rel="noopener noreferrer nofollow">analytics report</a>&nbsp;that shows ETH perpetual positions are retreating as it continues to dominate BTC in options open interest.&nbsp;
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&nbsp;rates.
Additionally, the report&nbsp;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&nbsp;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&nbsp;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
<div class="wp-block-image">
 <figure class="aligncenter"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXc93Iqc3Rsj7Cp-3G8lAvf2s18knhb1zBXziMUjOxWjTuMbyvkP-dMiZHighvQZoNEmIxj9eswcxyjSTmZ1avtPUKZUNTr_qRuhx_5Yx7jL6YGthGUVFPE64tDVi9MVm3-1OtajoA?key=gyC3dClYhwdpI4U8Q4b8k1d1" alt="">
 </figure>
</div>
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 <a href="https://drive.google.com/file/d/1hatqs8qqElGi2dEbTEFsh5bfnYGj9sg3/view?usp=sharing" target="_blank" rel="noopener noreferrer nofollow">whole report</a>.

Bybit and Block Scholes Report Shows ETH Dominates BTC in Options Open Interest

TheNewsCrypto

Other articles published on Dec 13, 2024

Mad Price Prediction: MAD Soars 12% As This New PEPE Derivative’s Presale Raises $5.5 Million In ...

The majesty and messiness of myth: A review of Femi Adebayo’s “Seven Doors”

Solana-Based Meme Coin Champion? DOGEN Aims for 10,500% Rally — Don’t Miss Out!

Texas Proposes Strategic Bitcoin Reserve

Can Kaspa (KAS) Outperform Ethereum (ETH) This Cycle?

Pi Network Price at a Crossroads: Can PI Reach $100 Before Mainnet Launch?

Join our free newsletter for daily crypto updates!