Bybit Releases Weekly Crypto Derivatives Report Amid Market Turmoil
Dubai, United Arab Emirates, February 7th, 2025
Bybit, the world’s second-largest cryptocurrency exchange by trading volume, has unveiled its latest weekly crypto derivatives report in partnership with Block Scholes. The report offers a detailed analysis of the past week’s market downturn, highlighting the impact of panic-driven sell-offs and movements in options pricing.
The broad market decline mirrored trends in the equities sector, erasing an estimated $10 billion in open interest following a high-volume trading session on Friday. Among major tokens, BTC remained resilient, maintaining positive funding rates despite the sell-off, whereas ETH experienced intensified volatility, with options market trends pointing toward further downside risks.
Key Highlights:
🔹 Risk-Off Sentiment on Monday:
Market-wide selling pressure on February 3rd was triggered by Trump’s proposed tariff measures, causing sharp declines across crypto and U.S. equities. The sell-off resulted in a staggering $3.1 billion drop in perpetual swap open interest across BTC, ETH, XRP, and SOL. According to Bybit’s co-founder and CEO, Ben Zhou, total liquidations ranged between $8-10 billion as leveraged positions were unwound. Trading volumes soared to a monthly peak of $31 billion in perpetual swaps on February 2nd as traders exited positions en masse.
🔹 Altcoins Face Heavy Losses:
Following the steep Monday downturn, bearish sentiment gripped the crypto market, pushing perpetual swap funding rates lower. Spooked traders aggressively closed long positions, intensifying the sell-off. However, BTC traders managed to maintain neutral funding rates, preventing a deeper decline.
🔹 ETH Braces for Volatility:
ETH displayed greater vulnerability compared to BTC during the recent market turmoil. Spot prices fell below the $2,500 mark, though open interest remained relatively stable due to lower-than-anticipated fluctuations in the ETH options market. Despite this, ETH’s realized volatility surged to nearly 140% amid the price correction. Options market indicators suggest that downside risks may not yet be fully accounted for, signaling potential further declines.
📊 Source: Bybit, Block Scholes
