Dubai, United Arab Emirates, October 4, 2024, Chainwire
Bybit, the world’s second largest cryptocurrency exchange by trading volume, in collaboration with BlockScholes, published a comprehensive report detailing movements in the derivatives market and painted a positive picture of fundamental sentiment.
Recent data has revealed that short-term options have only recently reflected long-term volatility smiles that consistently favor out-of-the-money (OTM) call options. Sentiment remains high on the derivatives market. This comes against the backdrop of a volatility premium caused by the upcoming US presidential election for options expiring after November 5, 2024, and the recent decline in spot prices in September.
Key features:
- Futures contracts: The surge in month-end trading volume in September was mainly focused on BTC contracts and led to a noticeable decline in the number of open positions as traders chose not to close out their positions rather than roll them over. The data showed significantly lower future activity than in perpetual swap markets.
- perpetual: The September wave of contract expirations had less of an impact on perpetual swap contracts. Despite the decline in the number of open perpetual positions at the end of the month, this does not translate into a significant decline, especially considering the encouraging level of trading volumes recorded in the last two days of September.
- Options: The upcoming U.S. elections continue to shift markets, heavily impacting BTC options. Long-term and short-term options showed different volatility expectations ahead of the election, while actual volatility hit a recent low in the month since the Fed cut interest rates.
Going back to October, the first week of Q4 saw patterns reflecting changing sentiment. However, the nature of BTC spot prices indicates that sentiment is just one factor among many broader macroeconomic factors.
Download the full report
For comprehensive analysis and detailed conclusions, download the full report here.
#Bybit / #TheCryptoArk
About BybitBybit is the world’s second largest cryptocurrency exchange by trading volume, serving over 50 million users. Founded in 2018, Bybit provides a professional platform where cryptocurrency investors and traders can find an ultra-fast matching engine, 24/7 customer support, and multilingual community support. Bybit is a proud partner of the current champion constructors and drivers of Formula 1: the Oracle (NYSE:) Red Bull Racing team. More information about Bybit can be found on the Bybit Press website. For media inquiries, please contact: media@bybit.com For more information, please visit: https://www.bybit.com For updates, follow: Bybit Communities and Social MediaDiscord | Facebook (NASDAQ:) | Instagram | Linkedin | Reddit | Telegram | TikTok | X | YouTubeContactHead of PRTony AuBybittony.au@bybit.com
