Key Trends in Crypto Derivatives Markets
The latest Bybit x Block Scholes crypto derivatives analytics report reveals critical insights into Bitcoin (BTC) and Ethereum (ETH) market behavior during year-end option expirations. Here’s a breakdown of the findings:
Market Highlights
1. Stability in Open Interest During Year-End Option Expirations
Despite not reaching December 2024 highs, BTC and ETH perpetual contracts maintained robust open interest levels during key option expirations. This suggests traders avoided excessive hedging with perpetual contracts, contributing to lower volatility.
- Traded volumes declined during winter holidays.
- Realized volatility dropped to 2024 lows, aligning with subdued market activity.
2. BTC Options Curve Remains Steep at Parity
Contrary to expectations, December’s option expirations did not trigger volatility spikes. Instead:
- BTC implied volatility term structure stayed steep, with longer-dated options (~57%) trading higher than 1-week ATM options (~52%).
- Neutral balance between calls/puts indicated limited leverage and cautious sentiment.
3. ETH Options: Positioning for Short-Term Moves
Despite heavy December expirations:
- ETH spot volatility remains below short-term implied levels.
- The ETH options curve briefly steepened before flattening, diverging from BTC’s persistent steepness.
- Surging 2025 ETH call options reflect bullish sentiment among traders.
Core Keywords
- Bitcoin Options
- Ethereum Volatility
- Crypto Derivatives
- Bybit Report
- Implied Volatility
- Open Interest
- Block Scholes
FAQ Section
Q1: Why did BTC volatility stay low during December expirations?
A: Limited delta hedging via perpetual contracts and reduced trading activity during holidays suppressed volatility.
Q2: What does ETH’s flattening options curve indicate?
A: Traders anticipate near-term price swings, with demand shifting toward short-dated options.
Q3: Where can I access the full report?
👉 Download the Bybit x Block Scholes full analysis here
About Bybit
Bybit is the world’s second-largest crypto exchange by trading volume, serving 60M+ users. Since 2018, it has pioneered Web3 infrastructure, bridging traditional and decentralized finance.
Explore More:
👉 Visit Bybit’s official site
Sources: Bybit, Block Scholes