Bybit x Block Scholes Crypto Derivatives Report: Optimism in Moderation in Pre-Election Markets

Dubai, United Arab Emirates, October 25th, 2024, Chainwire

Bybit, the worlds second-largest cryptocurrency exchange by trading volume, in collaboration with Blocks Scholes, releases a new report on the state of crypto derivatives. The report reveals cautiously optimistic market sentiment in the lead-up to the U.S. presidential election, alongside fluctuations in at-the-money (ATM) implied volatility. However, analysts believe that investors who may be anticipating BTC price to reach the next major milestone mark may want to temper expectations until after the election dust settles.

The report also illustrated a tangled relationship between BTC price and election odds. As the divergence between Trumps and Harriss odds widened, BTC spot prices were on the rise along with Trumps improved winning chance but has recently pulled back.

Key Insights:

Strong funding rates across tokens: From DOGE to BTC, all tokens are showing consistent and positive funding rates across the board for perpetual contracts. Traders are accumulating long positions, aiming for leveraged exposure in anticipation of the upcoming election. As investors increase their long-term exposure, the markets crescendo towards bullish sentiments.

BTC calls drove up implied volatility: BTC call options were leading in open positions and contributed to the upward trend of 14-day tenor options in the previous week. However, other tenors have generally seen downward pressure.

Plunging Implied Volatility: Large movements in 7-day implied volatility shaped very steep term structures for ETH options. In contrast with the calm in ETH spot prices and low short-dated realized volatility, the current landscape demonstrates heightened anticipation of the impending U.S. election and overall optimism with growing open positions of ETH call options.

To Access the Full Report:

Block Scholes x Bybit Crypto Derivatives Analytics Report (2024.10.23)

#Bybit / #TheCryptoArk /#BybitResearch

About Bybit

Bybit is the worlds 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 Ones reigning Constructors and Drivers champions: the Oracle Red Bull Racing team.

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ContactHead of PRTony AuBybittony.au@bybit.com

Disclaimer: This is a sponsored press release and is for informational purposes only. It does not reflect the views of Crypto Daily, nor is it intended to be used as legal, tax, investment, or financial advice.

Text source: Crypto Daily™

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