The crypto derivatives market is showing signs of recovery following the Federal Reserve’s recent rate cut. A new report from Bybit and Block Scholes highlights key trends in futures, options and perpetual contracts.
Bybitthe second largest cryptocurrency exchange by trading volume, has partnered with quantitative finance firm Block Scholes to release an in-depth crypto derivatives analysis report. The report analyzes the crypto market’s response to the Federal Reserve’s 50 basis point rate cut on September 18, 2024 and explores key trends in futures, options, and perpetual contracts.
Following the rate cut, the cash and derivatives markets reacted positively. Bitcoin (BTC) and Ethereum (ETH) prices rose as open interest for futures and perpetual swaps remained robust. Funding rates have mostly remained positive and BTC call open interest has gradually increased. The volatility smile for BTC and ETH calls has also widened, reflecting increased investor confidence.
Key findings of the report:
– Futures market: Despite a decrease in trading volumes, open interest remains stable, indicating that traders are holding on to their positions.
– Perpetual exchanges: Open interest and trading volumes for perpetual swaps remained stable, suggesting continued trader engagement.
– Options market: Although BTC options activity has shifted toward puts rather than calls, open interest in calls is slowly recovering. Short-term options implied volatility has declined since the Fed rate cut, signaling a shift toward bullish sentiment.
Bybit continues to provide comprehensive market intelligence and trading tools, helping users make informed decisions in the evolving crypto landscape.
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About Bybit
Bybit is one of the world’s leading cryptocurrency exchanges, ranking second in terms of trading volume. Since its launch in 2018, Bybit has grown to serve over 50 million users worldwide, offering a professional trading platform with a lightning-fast matching engine. Bybit also provides 24/7 customer support and multilingual community assistance, ensuring a seamless experience for crypto investors and traders. The exchange is a proud partner of Oracle Red Bull Racing, the reigning Formula 1 constructors’ and drivers’ champions. Learn more at Bybit.
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