Dubai, United Arab Emirates, October 4th, 2024,
Chainwire
Bybit, the world’s second-largest cryptocurrency
exchange by trading volume, in collaboration with BlockScholes,
released a comprehensive report deciphering movements in the
derivatives market and painted a positive picture of underlying
sentiment.
The latest data revealed that
short-term options have only recently mirrored long-term volatility
smiles which have consistently favored out-of-the-money (OTM)
calls. Spirit remains high in the derivatives market. This is
against the backdrop of the volatility premium created by the
upcoming U.S. presidential election for options expiring after
Nov.5, 2024, and the recent decline in spot prices in
September.
Key Highlights:
- Futures: The surge in trading volume at
month-end in Sep mainly concentrated in BTC contracts, and led to a
notable decline in open interest as traders opted not to close
their positions instead of rolling over. Data showed much lower
future activity than that in perpetual swap markets.
- Perpetuals: The Sep. wave of contract
expirations had less of an impact on perpetual swap contracts.
Despite a decline in perpetual open interest at the end of the
month, it does not translate to a significant decline, especially
given the encouraging level of trading volumes recorded over the
last two days of Sep.
- Options: The upcoming U.S. election continues
to move markets, heavily influencing the BTC options. Longer-term
and short-term options before the election displayed different
volatility expectations, while actual volatility has reached new
lows for the month since the Fed rate cut.
Tiding over to Oct, the first week of
Q4 saw patterns reflecting the shifting sentiment. The nature of
BTC spot prices however dictates sentiment is only one driver among
many broader macroeconomic factors.
Download the Full
Report
For a comprehensive analysis and in-depth findings, download the
full report here.
#Bybit / #TheCryptoArk
About Bybit
Bybit is the world’s second-largest cryptocurrency exchange by
trading volume, serving over 50 million users. Established in 2018,
Bybit provides a professional platform where crypto investors and
traders can find an ultra-fast matching engine, 24/7 customer
service, and multilingual community support. Bybit is a proud
partner of Formula One’s reigning Constructors’ and Drivers’
champions: the Oracle Red Bull Racing team.
For more details about Bybit, please visit Bybit Press
For media inquiries, please contact: media@bybit.com
Contact
Head of PR
Tony
Au
Bybit
tony.au@bybit.com