Dubai, United Arab Emirates, February 7th, 2025,
Chainwire
Bybit, the world’s
second-largest cryptocurrency exchange by trading volume, released
the latest weekly
crypto derivatives report in collaboration with Block Scholes,
providing a retrospective of the past week's panic sell-off and
analysis of options price movements.
The broad retreat mirrored equities
markets, leaving an estimated $10 billion-sized hole in open
interest after a high-flying Friday in the 24/7 crypto markets. BTC
stood out in the bloodbath as the only mainstream token maintaining
positive funding rates. Meanwhile, ETH endured heightened
turbulence, with sustained options market inversion suggesting
continued downward pressure ahead.
Key Insights:
Risk-off Monday:
Trump’s tariff threats sparked a broad market sell-off on Monday,
Feb. 3, hammering crypto alongside U.S. equities. The carnage wiped
out $3.1B in perpetual swap open interest across BTC, ETH, XRP, and
SOL. Ben Zhou, co-founder and CEO of Bybit, revealed $8-10B in
total liquidations as leveraged positions crumbled, an estimate
based on Bybit’s platform data. The turmoil drove trading volumes
to a monthly high of $31B in perpetual swaps on Feb. 2 as traders
rushed for the exits.
Altcoins Took a Hit:
Bears dominated crypto markets in the aftermath of another Monday
in the red. Perpetual swap funding rates spiraled downwards, likely
caused by spooked traders liquidating long positons in droves. BTC
faithfuls, however, managed to keep BTC funding rates afloat at
neutral level.
ETH Readies for a Bumpy
Ride: ETH has demonstrated less resilience than BTC in the
latest turmoil. Its spot prices suffered and dipped below $2.5k,
but open interest levels held reasonably steady thanks to
less-than-expected volatility in ETH options market. Still, ETH
realized volatility already surged to almost 140% in the price
correction, with further risks evident in options term structure,
suggesting the downside hasn’t been fully priced
in. 
Sources:
Bybit, Block Scholes
Access the full report, including detailed analysis of
volatility trends, funding rates, and options market dynamics.
#Bybit / #TheCryptoArk
/#BybitResearch
About Bybit
Bybit is the world’s second-largest cryptocurrency exchange by
trading volume, serving a global community of over 60 million
users. Founded in 2018, Bybit is redefining openness in the
decentralized world by creating a simpler, open and equal ecosystem
for everyone. With a strong focus on Web3, Bybit partners
strategically with leading blockchain protocols to provide robust
infrastructure and drive on-chain innovation. Renowned for its
secure custody, diverse marketplaces, intuitive user experience,
and advanced blockchain tools, Bybit bridges the gap between TradFi
and DeFi, empowering builders, creators, and enthusiasts to unlock
the full potential of Web3. Discover the future of decentralized
finance at Bybit.com.
For more details about Bybit, please visit Bybit
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Au
Bybit
tony.au@bybit.com
