Bybit x Block Scholes: Weekly Derivatives Insights Show Drop in Volatility Hedging

Dubai, UAE, March 24th, 2025, Chainwire

Bybit, the world’s second-largest cryptocurrency exchange by trading volume, released the latest weekly crypto derivatives analytics report in collaboration with Block Scholes, offering a comprehensive look at macro trends, trading signals, and market sentiment across the digital asset landscape.

This week’s report highlights a shift in sentiment across derivatives markets, as global asset prices stabilize and crypto assets maintain a high correlation with U.S. equities. Bitcoin (BTC) remains above $85,000, while Ethereum (ETH) has reclaimed the $2,000 level. Despite this recovery in spot prices, derivatives activity remains subdued, with negative funding rates persisting for major tokens including BTC, ETH, and Solana (SOL).

Key insights

• Market calms, short-term protection drops

The recent pause in the broader sell-off has cooled demand for short-dated protective puts, as realized volatility declines. While ETH’s implied volatility term structure has normalized, BTC’s remains flat, reflecting lingering caution. Overall, the quieter spot market has led to a more subdued options environment.

Sources: Bybit, Block Scholes

• ETH volatility declines

Lower realized volatility in ETH has reversed its at-the-money implied volatility term structure, pushing volatility expectations down. Options activity has yet to recover to late-February levels, with modest open interest in longer-dated contracts. As ETH regains the $2K mark, demand for call options now exceeds that for puts, signaling a potential shift toward bullish positioning.

The weekly Bybit x Block Scholes report continues to provide data-driven insights across spot, futures, perpetual, and options markets, empowering traders and institutional investors with actionable intelligence.

For detailed insights, readers may download the full report.

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.

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Head of PR
Tony Au
Bybit
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