Mar 10, 2025: Our weekly Institutional Insights explores the latest market developments — market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks — to help you supercharge your crypto trading.

 explores the latest market developments — market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks — to help you supercharge your crypto trading.

Weekly highlight — Fed likely to stay put amid softening job market

US job growth stabilized last month, with nonfarm payrolls increasing by 151,000 in February 2025, while the unemployment rate rose to 4.1%. This mixed report from the Bureau of Labor Statistics suggests a softening labor market, with more people out of work permanently, a decline in federal government jobs and a rise in part-time workers due to economic conditions. The number of individuals holding multiple jobs reached nearly 8.9 million.

Concerns about US president Donald Trump's policies have added to the uncertainty, as persistent inflation and reduced consumer spending might lead businesses to reconsider hiring. Economists predict that continued government actions, such as tariff hikes and spending cuts, could have a further impact on job creation.

The advance in hiring was primarily in the healthcare, transportation and financial sectors, but government payrolls saw their weakest growth in nearly a year. The report reflects the initial impacts of Trump’s second term, with significant job cuts anticipated due to federal layoffs.

Additionally, restrictions on immigration may hinder job growth. The labor market participation rate dropped to its lowest in two years, particularly among men, while the number of part-time workers rose to a four-year high, pushing the broader underemployment rate up.

Average hourly earnings increased by 0.3%, but economists warn that layoffs from major companies could lead to a rise in unemployment in the coming months. The Federal Reserve is expected to maintain interest rates, awaiting clearer signs of inflation trends.

Weekly crypto highlight — strategic reserve proposal fails to lift sentiment

De-risking in the crypto derivatives markets persisted following President Trump's proposal to include Bitcoin, Ether and three other tokens in a national strategic crypto reserve. While Trump's announcement briefly boosted crypto prices, it didn’t improve premiums or open interest for Bitcoin futures on the CME. The basis, reflecting the annualized expected return from selling Bitcoin futures while buying spot, experienced a momentary increase, but quickly fell back, indicating that US institutional investors remain cautious.

Perpetual futures, popular among non-US investors seeking leverage, also mirrored this trend, with their funding rate hitting negative levels not seen since September 2024. Trump's announcement did little to enhance sentiment on the CME, as the basis remained in single digits during Bitcoin's brief recovery. It’s noted that Trump's policies continue to disrupt broader financial markets, with crypto failing to act as a safe haven amid global uncertainty.

Increased liquidations and record outflows from Bitcoin exchange-traded products suggest ongoing risk aversion. Even crypto investors, traditionally tolerant of volatility, are opting to stay on the sidelines as they observe the early months of Trump's second term. Although Trump's pro-crypto stance previously propelled Bitcoin to new heights, his recent tariff policies and unpredictable geopolitical maneuvers have unsettled the crypto landscape.

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Weekly Institutional Insights: Job market softens; ETF outflows send headwind to crypto

Our weekly crypto derivatives analytics report delves into macro events, the current state of crypto and trading signals from spot trading volume, as well as futures, options and perpetual contracts.

Crypto price movements remain heavily influenced by US president Trump’s policies. Recently, several SEC cases against crypto firms were dropped, which is positive for the industry. This was followed by Trump’s announcement to include BTC, ETH, XRP, SOL and ADA in a US strategic crypto reserve. However, ongoing bearish sentiment in risk assets, highlighted by a decline of over 5% in the S&P 500 since its February all-time high, has negatively impacted crypto. 

Consequently, BTC and ETH have experienced heightened volatility, resulting in an inversion of their at-the-money implied volatility term structures, with strong demand for short-term protective puts.

Please check out the report’s highlights.

President Trump’s announcement on Mar 2, 2025 regarding a US crypto reserve to include BTC, ETH, SOL, XRP and ADA led to a sharp rally in their spot prices. However, funding rates for these tokens have remained subdued, compared to previous highs seen before Trump’s inauguration on Jan 20, 2025. Over the past week, long positions have paid a consistently positive rate across all coins, indicating a lack of strong short demand and potentially robust demand for long positions.

The rally in spot prices following Trump’s announcement of a US crypto strategic reserve to include ETH quickly reversed, as his ongoing tariff pledges contributed to bearish sentiment in risk assets. This volatility has pushed realized volatility above options-implied levels to monthly highs, leading to increased demand for short-term options. The term structure of volatility has inverted, with short-term volatility skewing toward puts as traders seek protection against potential downside.

Open interest in Solana (SOL) options declined at the end of February, with over $5M in calls and more than $3M in puts expiring, most of which weren’t rolled into new positions. Despite SOL trading 44% below its January all-time high, the majority of new positions have been in calls. However, this new positioning is disappointingly weak, given SOL's inclusion in the list of tokens for a crypto strategic reserve announced by Trump alongside BTC, ETH, XRP and ADA.

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Bybit X Block Scholes crypto derivatives analytics report (Mar 7, 2025): Investors seek protection as strategic reserve news rattles market

Exchange-traded funds (ETFs) linked to cryptocurrencies have seen notable activity, particularly in response to the recent market downturn. 

Market volatility and geopolitical influences

The cryptocurrency market has been marked by extreme price fluctuations in recent weeks, primarily influenced by political events and economic conditions. A notable catalyst has been US president Donald Trump’s aggressive financial policies, including his unexpected announcement of a US crypto strategic reserve. Initially, this announcement led to a surge in prices; however, the market quickly reversed, raising doubts about the effectiveness of government intervention in stabilizing the crypto sector.

Bitcoin, the top cryptocurrency, experienced a significant drop of 28.3% from its all-time high of $109,115, closing February at $78,226. This decline coincided with a heated exchange between Trump and Ukrainian President Zelensky, which unsettled the crypto community amid discussions about potential tariffs and geopolitical stability. The broader crypto market lost over $640 billion in just 25 days, showcasing a direct correlation between traditional stock market movements and cryptocurrency trends.

Investor behavior has been characterized by emotional responses, including fear of missing out (FOMO) and fear, uncertainty and doubt (FUD). These reactions have often led to price movements that contradict prevailing predictions. For example, during Bitcoin’s price decline, many retail traders panicked and sold off their holdings, only to witness a rebound shortly after. Conversely, price surges driven by FOMO frequently result in subsequent corrections, allowing larger investors (or 

Social media trends indicate a shift in trader sentiment, with discussions around high price targets for Bitcoin suggesting a market top, while talk of lower price expectations may signal a bottom. Recent data reveals a decline in discussions related to speculative investments, indicating a growing caution among retail investors. This shift toward stablecoins and Layer 1 tokens reflects a healthy level of fear that could potentially set the stage for bullish momentum in the future.

The role of ETFs and institutional interest

 (ETFs) linked to cryptocurrencies have seen notable activity, particularly in response to the recent market downturn. Significant outflows from crypto-backed ETFs occurred as investors reacted to declining asset values, resulting in heightened trading volumes. The interplay between ETF movements and underlying crypto assets continues to be crucial for assessing market health and investor confidence.

Despite the current volatility, institutional interest in digital assets remains strong, as indicated by Bitcoin's network growth and ETF trading volumes. This ongoing institutional engagement may provide a stabilizing effect on prices over time. Historically, periods of extreme pessimism in the market have preceded major bull runs, suggesting that traders could soon shift from panic to accumulation.

In conclusion, while the cryptocurrency market faces immediate challenges, the long-term outlook may be more optimistic. If key macroeconomic conditions improve and institutional buying increases, Bitcoin could potentially rise above the $100,000 mark by the end of 2025. For now, traders must navigate the volatility wisely to position themselves for future rewards.

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Bybit x Santiment: Crypto strategic reserve unnerves market; investors turn cautious

A crypto strategic reserve is essentially a state-sanctioned reserve of Bitcoin or other digital assets designed to function similarly to the gold reserves held by governments.

Over the past year, cryptocurrencies have gained more acceptance and legitimacy in the eyes of government officials and politicians. One positive result of this development is the concept of a Bitcoin and crypto strategic reserve, which aims to create a state-backed store of value similar to the more traditionally held gold reserves.

In this article, we’ll explore what a Bitcoin and crypto strategic reserve is, Trump’s executive order establishing the strategic reserve and the broader political and market implications of such a move.

Trump's signs executive order for US crypto strategic reserve

In August 2024, then-presidential candidate Donald Trump publicly supported the idea of a US Bitcoin reserve during his campaign, arguing that a state-backed digital asset would not only boost national prestige but also provide a critical counterbalance in an increasingly digital financial ecosystem.

On Mar 2, 2025, President Trump announced a broader 

 that would extend the idea to other major cryptocurrencies, such as ETH, SOL, XRP and ADA.

 an executive order (EO) to establish a “Strategic Bitcoin Reserve and a U.S. Digital Asset Stockpile.” Both the reserve and stockpile would contain BTC and other digital assets held by the Department of Treasury that were seized from criminal proceedings. However, the EO also mentioned the possibilities of developing “budget-neutral strategies for acquiring additional bitcoin” without using public funds.

The initial market reaction to the Mar 2 announcement was positive. All of the coins mentioned in the reserve saw significant buying and short covering, which led to double-digit gains across the board. For example, BTC was up 12%, ETH gained 16%, SOL rallied by 28% and XRP saw a major 35% gain. ADA was the biggest gainer, rallying as high as 72% following the announcement. 

While immediate reactions were positive, there were also several prominent figures, even within the crypto community, who questioned the inclusion of other assets — apart from Bitcoin — into initiatives for the strategic crypto reserve.

However, following Trump’s executive order to establish the strategic reserve on Mar 7, BTC 

 by around 5.7%, as market participants were left underwhelmed. Despite David Sacks, Trump’s crypto and AI tsar, calling the reserve a “digital Fort Knox,” investors were disappointed that this signalled no additional purchases of Bitcoin or other digital assets.

A Bitcoin strategic reserve is essentially a state-sanctioned reserve of Bitcoin designed to function similarly to the gold reserves traditionally held by governments. It's a common practice of governments to hold gold as a reserve to protect their national currencies in case of an emergency. Gold often forms a large share of forex reserves for most countries. The table below shows the top 10 nations holding gold reserves as of Feb 7, 2025.

Since Bitcoin has largely gained acceptance as 

, the idea behind a Bitcoin strategic reserve is to create a decentralized, secure vault system whereby Bitcoin is stored and managed by federal governments. By allocating a portion of national reserves to Bitcoin, governments could theoretically strengthen their balance sheets and diversify away from fiat currencies that are vulnerable to inflationary pressures.

Proponents of such a move argue that Bitcoin’s finite supply and decentralized nature makes it an effective store of value. Its global acceptance and increasing institutional interest lend further credibility to this idea.

In July 2024, US Senator Cynthia Lummis introduced the “Boosting Innovation, Technology and Competitiveness through Optimized Investment Nationwide” 

. It’s a legislative proposal aimed at establishing a strategic Bitcoin reserve in the United States. The press release from Senator Lummis’s office outlines several critical components of the bill, as follows:

What does the strategic reserve mean for the future of Bitcoin?

The idea of a Bitcoin strategic reserve is innovative, and aims to use Bitcoin to improve the balance sheet of nation states. This could be a win-win, as Bitcoin would benefit from increased legitimacy while nation states would be holding an asset that potentially provides better returns than those of gold. 

While there will be no immediate acquisition of Bitcoin from the US government, the reserve implies that there will be no selling pressure from the roughly 200,000 BTC (almost $17.4 billion) held by the US government. However, it remains to be seen if other strategies to acquire additional BTC without incurring cost to US taxpayers will be implemented.

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Crypto Strategic Reserve: The BITCOIN Act and beyond

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Get started with Bybit trading competition at ease & never miss out on any opportunities to win bonuses and rewards!

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The benefits you gain from joining trading competitions are boundless. You can make money, hone your trading skills, explore untried strategies and so much more. Bybit hosts a plethora of trading competitions, from small but frequent product-specific competitions held once a month or bimonthly to annual grand events like the 

 (WSOT) competition. These contests are a perfect avenue to help you reap profits, regardless of the market condition. 

With so many types of competitions, you may need more clarification on what types you’re eligible to join and what kind of rewards you can gain from them. With this handy guide, you’ll wonder no more as we break down the nitty-gritty of participating in Bybit's trading competitions.

With all its varying products, Bybit has many different kinds of competitions, ranging from 

. Regardless of the type of competition, participants are usually ranked on the leaderboard based on either profit and loss (P&L, or PnL) ratio or trading volume. 

P&L refers to the total amount of revenue and costs of your trading throughout the competition. Hence, when you compete to rank for P&L, you're competing to show how profitable you are.

P&L (%) = (Profit / Initial Equity + Total Deposits) * 100%

If you have the same P&L% as another participant, your total trading volume will then determine your ranking.

Trading volume measures the total number of contracts or crypto traded during the competition. If you achieve the same trading volume as another competitor, you’ll then be ranked based on the time you took to reach that trading volume. 

Benefits of Joining a Crypto Trading Competition

Participating in a crypto trading competition offers numerous benefits to uplift your trading journey. These competitions bring exciting rewards that can increase your gains during a bull market, or offset your losses and reignite your motivation to seek financial gains during a bear market. Moreover, the experience gained from live trading is invaluable, surpassing theoretical knowledge. Competitions provide real-life insights, opening your eyes to new opportunities.

Competing also inspires you to explore innovative trading strategies, going beyond your comfort zone and potentially yielding astounding gains. Comparing your performance with other traders on a level playing field allows you to gauge your abilities and even earn coveted bragging rights if you emerge victorious.

Please be aware of several registration criteria, as they’ll affect your eligibility to join the competitions.

Depending upon the specific competition, the registration criteria will look at the amount of net assets or net equity you have in your Bybit account. But what’s the difference between net assets and net equity? Net assets are your total assets minus your liabilities, and include unrealized gains and losses, whereas net equity excludes unrealized gains and losses.

Besides net assets and net equity, other elements also come to play in influencing your eligibility to join a competition. For instance, a single user shouldn’t have more than one account. If you create multiple accounts to join competitions on Bybit, you’ll be considered a fraud and will consequently be disqualified. Furthermore, you can only participate in one competition within the same time frame, except for grand-scale competitions like WSOT and Copy Trading Fiesta that hold several events within one competition. In such cases, you’ll be able to participate in more than one event simultaneously.

While you may only open one main Bybit account, you can open up to 20 

 connected to your main account, while four Subaccounts can be used to link to your Main Account for competitions. With Subaccounts, you can now join multiple competitions simultaneously to maximize your rewards.

Similarly, Market Makers and Pro users are prohibited from joining Bybit competitions, as they’re typically institutional traders who can make use of their high trading volumes to gain an edge in the competitions.

While most Bybit competitions only specify net assets or net equity as their registration criteria, certain competitions also require a referral link or code on top of the minimum net assets or net equity amount. Through joining such competitions, you can also expect exclusive rewards not found in other competitions.

Speaking of rewards, Bybit generally offers two types of rewards for its competitions: the prize pool and lucky draw. It’s important first to ensure you’re eligible for rewards, especially for P&L-ranked competitions. Even if the competition is ranked by P&L, you’ll still need to hit a minimum specified trading volume before you qualify for rewards. For example, the 

 held in September 2024 required participants to reach a derivatives trading volume of at least $10,000,000 before they could earn any rewards.

The main reward base for Bybit competitions is the prize pool. The prize pools can consist of hundreds of thousands of USDT, or even millions of USDT, depending on the scale of the competition. For large-scale competitions like WSOT and Copy Trading Fiesta, participants can enter several events under these competitions and obtain more rewards. 

It's good to embrace a positive and encouraging mindset as you participate in trading competitions. Observe and learn from the strategies employed by other contestants to refine your own trading plan. By analyzing their moves, you can gain valuable insights and give yourself a competitive edge. Remember, however, that it's also essential to think critically and avoid blindly copying others.

Always analyze your own performance and adjust your strategy accordingly, even in short-term competitions. Also, stay informed about market events and developments that can impact your performance, as this knowledge will maximize your chances of success. With the right mindset and strategic approach, you can excel in trading competitions.

Bybit is actively organizing trading competitions to provide users with a chance to maximize rewards. 

The TradeMasters Grand Prix trading competition and the World Series of Trading (WSOT) are among the biggest annual competitions on Bybit.

TradeMasters Grand Prix Trading Competition

Bybit’s TradeMasters Grand Prix trading competition is a year-long series of derivatives trading contests with a prize pool of 10,000,000 USDT. This year, it opens its first series with a prize pool of 1,000,000 USDT. The competition runs from Feb 18, 2025, 10AM UTC to Mar 11, 2025, 10AM UTC, with registration held between Feb 11, 2025, 10AM UTC and Mar 6, 2025, 10AM UTC. 

You’ll need to hold at least 5,000 USDT worth of crypto in your Bybit account in order to participate and be eligible for rewards, and you’ll be ranked based on either your trading volume or your PnL%. If you reach a trading volume of over $6 million, using specific tools like the 

, you’ll unlock an extra 50,000 USDT prize pool. 

Additionally, if you become a Bybit VIP during the competition period,, you’ll enjoy an exclusive welcome bonus of up to 800 USDT.

Launched in 2020, Bybit’s World Series of Trading (WSOT) has grown continually. In 2024, WSOT broke records with an all-time high of $100 billion in trading volume and over $137 million in profits for its participants. 

 offered a grand prize pool of 10,000,000 USDT and consisted of several trading competitions. 

 competition featured a prize pool of 7,150,000 USDT, split into four reward categories: Squad PnL% Ranking, Regional Squad PnL% Ranking, Individual Profit and Individual Trading Volume. There were also side competitions like 

, open to both Master Traders and Followers, and 

 a vote-based competition whose voters shared in an 800,000 MNT prize pool by voting for a top ten–ranked web3 project. 

How do I know my rewards distribution status?

There will be a Bybit Announcement post regarding rewards distribution and dates.

You can only collect your rewards after a competition ends, with the waiting period ranging from one week to a month. A risk review will be conducted after each competition ends, after which the rewards will be given on the date specified in the announcement post. 

As highlighted above, creating multiple accounts to earn more rewards in competitions is considered fraudulent behavior and will lead to disqualification. Other fraudulent behaviors include 

, volume faking, market manipulation and more. Be sure to read the competition’s terms and conditions carefully to avoid getting disqualified. 

Now that you’ve learned about all the rankings, registration criteria and rewards in Bybit trading competitions, you might be eager to flex your muscles in some of them. But before you do, remember that it’s important to carefully pore over the terms and conditions to ensure you get properly reimbursed for your efforts.

We hope our tips will help your competition journey be a fun and fruitful one. May you enjoy the process and savor the sweetness of winning!

How to Join Bybit Trading Competitions (Ultimate Guide)

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards