Bybit Weekly Crypto Derivatives Report: Risk-off Monday Hammers Crypto alongside U.S. Equities

Bybit, the world's second-largest cryptocurrency exchange by trading volume, released the latest weekly crypto derivatives report in collaboration with Block Scholes.

Dubai, United Arab Emirates, 7th February, 2025, Chainwire

Cryptocurrency derivatives data firm Block Scholes has released the latest weekly crypto derivatives report in collaboration with Bybit, the world’s second-largest cryptocurrency exchange by trading volume. The report provides a retrospective of the past week's panic sell-off and an analysis of options price movements.

The broad retreat mirrored equities markets, leaving an estimated $10 billion-sized hole in open interest after a high-flying Friday in the 24/7 crypto markets. BTC stood out in the bloodbath as the only mainstream token maintaining positive funding rates. Meanwhile, ETH endured heightened turbulence, with sustained options market inversion suggesting continued downward pressure ahead.

Here’s a snapshot of the key insights from the report:

Risk-off Monday: Trump’s tariff threats sparked a broad market sell-off on Monday, Feb. 3, hammering crypto markets alongside U.S. equities. The carnage wiped out $3.1B in perpetual swap open interest across BTC, ETH, XRP, and SOL. Ben Zhou, co-founder and CEO of Bybit, revealed $8-10B in total liquidations as leveraged positions crumbled, an estimate based on Bybit’s platform data. The turmoil drove trading volumes to a monthly high of $31B in perpetual swaps on Feb. 2 as traders rushed for the exits.

Altcoins Took a Hit: Bears dominated crypto markets in the aftermath of another Monday in the red. Perpetual swap funding rates spiraled downwards, likely caused by spooked traders liquidating long positons in droves. BTC faithfuls, however, managed to keep BTC funding rates above neutral at a positive 0.0001%.

ETH Readies for a Bumpy Ride: ETH has demonstrated less resilience than BTC in the latest turmoil. Its spot prices suffered and dipped below $2.5k, but open interest levels held reasonably steady thanks to less-than-expected volatility in ETH options market. Still, ETH realized volatility already surged to almost 140% in the price correction, with further risks evident in options term structure, suggesting the downside hasn’t been fully priced in.   Sources: Bybit, Block Scholes

Access the full report, including detailed analysis of volatility trends, funding rates, and options market dynamics.

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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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