Our monthly report delves into insights from options volatility to inspire your next crypto move.

: April 2025 saw BTC's implied volatility surge above 75% due to tariff chaos, but it collapsed to 35% within a week, indicating a surprising short-term drop in volatility expectations despite ongoing macro uncertainty.

: BTC's return above $100K was met with muted enthusiasm in the derivatives market, suggesting that 

traders no longer view this level as a significant psychological barrier, and the rally isn’t likely to be sustained.

: ETH significantly outperformed BTC with a 23% rally, leading to increased demand for short-dated calls and a positive shift in the options market, highlighting renewed bullish sentiment.

: Historical trends suggest a potential summer lull in volatility in store for BTC, raising questions about whether this pattern will repeat in 2025 amidst ongoing macroeconomic challenges.

Bitcoin’s volatility plunges in late April

April 2025 witnessed significant volatility in the cryptocurrency market, particularly influenced by US trade policies. As President Trump announced steep reciprocal tariffs, the crypto landscape experienced sharp fluctuations. Bitcoin (BTC) initially demonstrated resilience, despite widespread sell-offs in equities and the US dollar, only to succumb to a decline from $88K to $75K by early April. This period was characterized by a dramatic rise in implied volatility that peaked above 75% as traders sought protection through short-dated puts. However, as the tariffs faced moderation, implied volatility plummeted to 35% by mid-April, marking the lowest level since early March.

Interestingly, while short-tenor volatility collapsed, 

the back end of BTC's term structure remained elevated, signaling that market participants expect heightened volatility in the mid-term

. Amidst this backdrop, realized volatility fell below the five-year seasonal average, paralleling similar trends in previous years and suggesting a 

. The historical pattern contrasts that BTC often experiences a rebound in volatility heading into May, raising questions about whether this trend will persist.

Subdued derivative response suggests Bitcoin rally might not endure

The market's reaction to BTC's resurgence above the $100K threshold was notably subdued compared to previous instances. While BTC rallied 20% following the initial tariff sell-off, the derivatives market displayed a muted response. The 25-delta put/call skew, a measure of market sentiment, indicated only a slight bias toward out-of-the-money calls, contrasting sharply with sentiment previously when BTC first breached the $100K mark in December 2024. This lack of exuberance suggests that traders no longer view $100K as a significant inflection point, raising concerns about the sustainability of the rally. 

Meanwhile, funding rates and implied volatility — though still bullish — didn’t reach the extremes observed in earlier months, indicating more cautious market sentiment. The relationship between BTC's spot price and implied volatility suggests that although traders are optimistic, they’re waiting for BTC to approach previous all-time highs before adjusting their volatility expectations.

Ethereum's option data points to further rally

In stark contrast to BTC, Ethereum (ETH) displayed remarkable resilience and outperformed major cryptocurrencies, gaining 23% overnight following favorable trade news. This rally catalyzed a surge in demand for short-dated calls, pushing front-end volatility expectations significantly higher. The response from the derivatives market was robust, inverting the term structure and indicating renewed bullish sentiment toward ETH, even as it’s trading well below its all-time high.

The ETH options market exhibited a shift from neutral to slightly negative skew, to a 10% bias favoring out-of-the-money calls, reflecting the market's confidence in ETH's potential to regain lost ground. Despite overall macroeconomic uncertainty, the demand for ETH options suggests that traders are optimistic about Ether’s future price movements.

In conclusion, April 2025 highlighted the complex interplay between macroeconomic factors and cryptocurrency market dynamics. While BTC faced challenges in eliciting strong responses from derivatives markets upon recrossing the $100K threshold, ETH's performance indicated a divergence in market sentiment. As traders navigate the evolving landscape, the potential for seasonal volatility patterns and the influence of macroeconomic developments will remain critical factors in shaping future market expectations.

Advanced

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Bybit X Block Scholes options volatility report (April 2025): Data suggests Bitcoin rally might not endure, but Ether sees further upside

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

After mostly trading sideways at the end of April 2025, a US-UK trade deal sparked a crypto rally. BTC surged past $100K for the first time since February, but it’s ETH's performance that captured the derivatives market's attention. 

A 23% increase in ETH's spot price led to an inverted term structure and a spike in front-end volatility. The put/call skew for ETH shifted from a bearish bias to a nearly 10% skew toward OTM calls. Other sentiment indicators, such as perp funding rates and futures yield, also supported the rally. In contrast, while BTC's funding rates and skew have increased, its implied volatility remains low at 40%, over 30 points below ETH's 7-day implied volatility.

Please check out the report’s highlights.

ETH’s record performance since 2021 was propelled by positive term structure

ETH has significantly outperformed BTC and the top 10 cryptocurrencies, marking its largest single-day gain since May 2021. The options market has reflected this enthusiasm, with implied volatility for short tenors rising sharply and inverting ETH’s term structure, thus contrasting with BTC's muted, positively sloped structure. The 7-day tenor for ETH is now trading at a 33-point premium over that for BTC. 

While puts dominate BTC's open interest, ETH is seeing the opposite trend. On May 8, 2025, options volumes surged over $120M, more than double the typical monthly volume, with $60M more in calls than puts. ETH now boasts a positive futures curve and funding rates, as well as a strong skew toward OTM calls.

ETH sees exceptionally bullish put/call skew

ETH's substantial outperformance in the current crypto rally has led to bullish sentiment in its derivatives markets. Funding rates have surged, futures yields are strongly positive and the put/call skew has shifted significantly toward OTM calls, now close to 10%. This starkly contrasts with early April, when the skew was 20% toward OTM puts. Although ETH has underperformed (relative to BTC and other "ETH killers"), it has rebounded in this rally, with the ETH/BTC ratio rising after spending most of the year declining.

Open interest for Bitcoin options increased, with implied volatility remaining suppressed

The announcement of the new US administration's first trade deal, nearly 30 days into Trump's 90-day tariff pause, jolted crypto markets, pushing BTC back up above $100K. Surprisingly, implied volatility has remained suppressed, failing to invert BTC's term structure, with front-end volatility trading at around an 18-month low of 35-40%. On May 8, 2025, options volumes surged, with call volume reaching $189M, reversing last week's trend of higher put volumes. Meanwhile, open interest rose steadily to exceed $300M, the highest level this month, but remains significantly larger for puts than for calls despite the price increase.

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Bybit X Block Scholes crypto derivatives analytics report (May 9, 2025): Ether’s put/call skew turns remarkably more bullish than Bitcoin’s

This article explores how Sign works, its flagship products (such as TokenTable, SignPass and EthSign), its native token (SIGN) and how to trade SIGN on Bybit.

Sign is an omnichain attestation infrastructure that empowers users and developers to verify real-world claims on-chain. Built for a more transparent and decentralized future, it eliminates the need to “just trust” and enables everyone to verify with cryptographic proof.

This article explores how Sign works, its flagship products (such as TokenTable and EthSign), its native token (SIGN) and how to trade SIGN on Bybit.

 is an omnichain attestation protocol designed to make it easy for anyone to verify the authenticity of any claim — 

. Whether it’s a document, credential or user identity, Sign transforms traditional trust models into verifiable, cryptographic attestations. 

Sign’s mission is to replace outdated, opaque validation systems with transparent, 

 proof — enabling a future where “verify” replaces “trust.” Through tools like schema registries and digital signatures, Sign empowers users to bring accountability and integrity to digital interactions.

Sign is developed by the team behind EthSign, a 

-native e-signature and agreement platform. Its core team brings deep experience in 

 development and cross-chain integrations.

The project is backed by top-tier investors, including Sequoia Capital China (now known as HongShan Capital Group), Mirana Ventures, HashKey Capital and Hack VC.

This strategic funding positions Sign as a foundational layer in the web3 infrastructure stack.

Sign allows users to create attestations — cryptographically signed statements that prove the validity of claims, such as credentials, achievements or actions. These digital proofs can be verified by anyone at any time, making them tamperproof and transparent.

Sign’s key technical elements include a schema registry that ensures consistent data formatting, digital signatures proving authenticity, and on- and off-chain attestations with support for revocation or updates

This system acts like a programmable layer for web3, bringing a new level of trust to identity, credentials and data exchange.

TokenTable is Sign’s flagship token distribution platform. It helps projects unlock, distribute and manage tokens transparently and securely at scale.

It uses Sign’s attestation engine to verify token unlocks, 

 and vesting schedules, ensuring traceable, auditable token flows.

SignPass is a blockchain-based identity solution that brings real-world credentials on-chain. One notable implementation is the Sierra Leone PR Card, used for the world’s first government-approved on-chain permanent residency program.

SignPass offers encrypted on-chain records for easy 

 verification, physical ID issuance for daily identity use and streamlined digital application systems for cross-border access.

It showcases the way blockchain can modernize public sector services worldwide.

EthSign is a decentralized contract signing platform that lets users create, sign and store legally binding agreements directly on-chain. It removes intermediaries and ensures documents are immutable and accessible.

EthSign reinforces Sign’s mission by bringing traditional documentation into the realm of verifiable web3 attestations.

The SIGN token is the native utility token powering the Sign ecosystem. It’s used for:

The total supply is capped at 10 billion SIGN, with 1.2 billion tokens in circulation. While the fully diluted valuation (FDV) sits above $746 million as of May 7, the circulating market cap is approximately $89.6 million. SIGN continues to gain traction across exchanges and developer networks.

SIGN is available for trading on Bybit via Spot trading and as a USDT Perpetual contract. Bybit offers up to 75x leverage for the SIGNUSDT Perpetual contract and supports secure, high-liquidity spot trading.

Start exploring the future of attestations with SIGN on Bybit today.

Intermediate

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Sign (SIGN): Web3 protocol for trustless attestation

Compliant trading means following platform rules and avoiding manipulative behavior. Learn more about how you can trade responsibly and compliantly on Bybit.

Crypto trading has come a long way from what used to be the domain of institutional players, and is now open to almost anyone with an internet connection. It’s easier than ever to buy and sell digital assets, try new strategies or build a portfolio from scratch all within minutes.

But with that level of access comes responsibility. As more people join the market, the need for fairness and accountability has become even more important. This isn’t just about price charts or profits — it’s about keeping the playing field level for everyone involved.

At Bybit, we take that responsibility seriously. We're here to offer the tools, safeguards and education you need to help you trade responsibly and to protect the platform from misuse.

This article describes what it actually means to trade compliantly, why it matters — and what can happen if things go off course.

Compliant trading means playing fair, following the platform’s rules, staying within the boundaries of what’s allowed and avoiding anything that could unfairly affect the market.

It’s not about avoiding risk: it’s about knowing what you’re doing, using official tools the right way and making sure your trades aren’t causing harm to yourself or others.

In short, compliant traders don’t just focus on their P&L — they understand that how they conduct themselves while trading matters. Responsible trading protects their accounts, keeps the platform stable and builds long-term credibility in the crypto ecosystem.

Why does responsible and compliant trading matter?

It’s easy to assume that compliance is only something platforms or regulators need to worry about. But in reality, every trader plays a part. When someone attempts to exploit the system — for example, by coordinating mass trades through off-platform channels — the consequences can ripple across the entire market.

In extreme cases, irresponsible trading behavior can:

And if the trades in question are linked to coordinated action, use of fake accounts or external bots? That opens the door to account freezes, compliance reviews and, in some cases, permanent suspension.

Bybit has a responsibility to act when the system is being abused — not just for legal reasons, but in order to protect honest traders.

Common examples of noncompliant or risky behavior

Some traders join Telegram groups or online communities in which KOLs (key opinion leaders) give out coordinated trading instructions (for example, “Buy token A now, sell it in an hour”). This practice isn’t just risky: it often involves a small number of insiders benefiting while the majority end up with losses.

When many people follow the same instruction all at once, it can artificially inflate the price of a low-liquidity token. The KOLs then exit at the top —while others are left with falling prices and unexpected liquidations.

Such a textbook case of market manipulation violates our Terms of Service and, depending upon jurisdiction, could violate financial laws.

Using bots or unverified trading strategies

Some Telegram groups may seem convincing, but trades coordinated off-platform are often unverified and may serve someone else’s agenda. 

 programmed to front-run trades, mimic pump-and-dump strategies or follow unverified signals can trigger compliance red flags and may lead to account restrictions.

Bybit does not support trading bots from unverified sources. They can also trigger flags in our monitoring systems, which may result in account suspension.

Using another person’s account or sharing login credentials — even if it’s with a family member — goes against both Bybit’s policies and global 

(AML) rules. It also opens the door to fraud, loss of funds and irreversible penalties.

Tips for responsible and compliant trading on Bybit

The good news is that there’s a better way to trade — responsibly, safely and with confidence, starting with the right tools, mindset and habits.

Use copy trading the way it’s meant to be used

 is one of Bybit’s most trusted features, and for good reason. It gives users access to professional traders’ strategies while maintaining full transparency. However, it only works if you follow verified 

These traders have been vetted and their stats are fully visible. You can view their P&L, risk settings and trade history. Bybit also provides built-in tools, such as 

 and staking products allow you to earn passive yield with minimal effort. These products are fully backed by our infrastructure and undergo regular audits, and are a compliant way to generate returns without chasing risky trades.

No matter how convincing a Telegram group may sound, remember that trades executed outside of regulated channels are unverified and often unaccountable. They may be coordinated for someone else’s gain.

 offers a wide range of articles and tutorials, covering everything from indicators and oscillators to advanced portfolio strategies. Before following any external signal, it’s worth spending 10 minutes to understand the rationale behind it. In trading, knowledge is your best form of compliance. Before you enter any position, ensure that you fully understand the asset you're trading, the current market conditions and the risks involved.

, never share your login credentials, and always enable two-factor (2FA) authentication. In addition, all trading activity should originate from your own account and remain under your own control.

Bybit’s systems are designed to flag irregular behavior. If your account is found to be engaging in prohibited activity, even unintentionally, you may be:

We take these steps in order to protect the broader user base and to uphold market fairness.

Being compliant doesn’t mean missing out on opportunity. In fact, it’s the opposite. It means you’re using the platform the way it was designed, with safeguards, transparency and trust. Shortcuts might look appealing in the short term, but they rarely end well. The most successful traders on Bybit are the ones who understand risk, stay informed and trade with integrity.

Take the time to learn and use the tools available to you. And remember: protecting your account starts with choosing how you’ll trade.

Beginner

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How to trade compliantly and responsibly on Bybit

Bybit Learn

Altcoins

Blockchain

Optimism is an L2 blockchain designed to scale Ethereum in a simple, secure and flexible way via its optimistic rollup technology. 

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If you're looking for a promising crypto technology to invest in, Optimism stands out as an excellent choice. Its innovative rollup technology has positioned it as a top-tier 

 blockchain that skillfully addresses Ethereum’s scalability challenges. 

This article delves into the intricacies of Optimism and its underlying technology, and sheds light on the prospects it holds for investors of OP tokens.

 is a Layer 2 (L2) scaling solution for Ethereum that’s designed to provide lightning-fast transactions at a fraction of the cost.

 It aims to drive the vision of Ethereum toward achieving decentralization through a transparent and sustainable blockchain for the public good.

As an L2, Optimism is built on top of Ethereum's architecture. Hence, it’s 

–equivalent, and acts as a minimal extension of the main Ethereum layer. In this way, developers and crypto users can benefit from speedy transactions at a low fee while still enjoying the security of Ethereum's architecture. 

Optimism now aims to further enhance its scalability with a platform called 

, consisting of a network of chains built on the 

, which merges its OP Mainnet with other L2 chains. As a Superchain, Optimism aims to create an interoperable and composable ecosystem to simplify the integration of L2s.

How Optimism Solves Scalability Issues on Ethereum

 is considered one of the most secure and decentralized blockchains in the crypto space. However, the chain has faced perennial network congestion challenges and high gas fees, significantly impairing its scalability. L2s such as Optimism have a simple, flexible and user-friendly solution to this issue. 

 the Ethereum blockchain, while taking advantage of Ethereum's infrastructure. During a transaction, Optimism continues to communicate with Ethereum’s 

, ensuring that it still offers similar security and decentralization guarantees. Layer 1 handles security, decentralization and data availability, while Optimism’s Layer 2 handles scaling.

During the process, no changes are made to Layer 1. In a way, Optimism takes away the burden of financial transactions from Ethereum. The removal of this load from Ethereum’s blockchain removes network congestion.

Here are just a few of the benefits that Optimism crypto offers:

 to process transactions in batches, which helps reduce gas fees and network congestion. Rollups can help users save up to 100 times the gas fee, compared to the Layer 1 protocol.

The rollup technology used by Optimism crypto bundles up hundreds of transactions on Ethereum’s Layer 1 into a single transaction. Since there are multiple transactions in a bundle, the gas fee is distributed among all the users. While the rollup is executed on Optimism’s Layer 2, the transaction data is posted to Ethereum’s Layer 1 for processing.

Optimistic rollups are "optimistic" in the sense that every transaction is assumed to be valid on Optimism’s Layer 2, and no computations are performed. If the system suspects fraud, it runs fraud-proofing to verify the transaction.

 upgrade to its OP Stack, presenting multiple improvements to its mainnet such as lowered transaction costs and greater Ethereum equivalence. 

There are mainly two types of rollup solutions on Ethereum: Optimistic rollups and 

. While both rollups move the transactions off-chain to process the data, the method used to verify the transactions makes them different.

Optimistic rollups assume that all transactions are valid, so it doesn’t perform heavy calculations on Layer 2. Instead, the rollup moves the batch to Layer 1 without verifying the validity of a transaction, which leads to a significant improvement in scalability.

If anyone suspects a fraudulent transaction, they can challenge the validity of the batch within a week. Optimistic rollups then run a fraud-proof, which verifies information using the data on Layer 1.

On the other end of the spectrum are ZK-Rollups, which are slightly different as they generate a validity proof for every bundle after moving them to Layer 2. The validity proof is then transferred back to Layer 1 serving as a proxy for the corresponding bundle. Since validation occurs on Optimism’s Layer 2, it helps reduce gas prices and validation times at Layer 1.

Each of these technologies has certain benefits and drawbacks. For instance, an Optimistic rollup is preferred for executing smart contracts. In contrast, a ZK-Rollup is an evolving technology that’s mainly relegated to performing simple transactions.

On the downside, the withdrawal period for Optimistic technology is longer than for ZK-rollups because Optimistic rollups have a "challenge period" to deal with. In contrast, ZK-rollups have very fast withdrawal times, which makes them an ideal solution for apps which require simple payments.

Using Optimism is similar to using Ethereum. You'll need to connect to a 

 and add the Optimism network to use it. Then, fund the wallet with ETH to begin transacting. 

. Like Etherscan, Optimism Explorer contains information such as verified smart contract source code and details of transactions. You'll also find specific features of the OP Mainnet, such as a list of L2-L1 transactions (and vice versa). 

, which lets you swap assets between Optimism and L1 chains like Ethereum. Besides the OP Mainnet Standard bridge to transfer your assets, you can also build a custom bridge for 

 tokens not supported by the Standard bridge.

Optimism vs. Other ETH Layer 2 Scaling Solutions

Irrespective of their size, computer networks can only manage a limited amount of traffic. Once a network becomes popular, it's bound to become congested.

Various Layer 2 networks help Ethereum deal with its scalability issue. These Layer 2 networks attach themselves to Ethereum's core, the Layer 1 chain. Optimism is one such scaling solution, but it's not the only one. 

, because they act like roads connecting to the main Ethereum network.

Following is an overview of the three most popular ETH Layer 2 scaling solutions.

 is an Optimistic rollup technology similar to that of Optimism. It's often said that Arbitrum tweaked the source code of Optimism crypto to develop a distinct Layer 2 scalability solution.

The major difference between Optimism and Arbitrum is how they manage fraud-proofs. Whereas Optimism crypto uses a single-round fraud-proof, Arbitrum utilizes multiple rounds. 

Using a single-round proof, Optimism provides instant verification, as it relies on Ethereum’s Layer 1 to complete the transaction. The transaction is almost instantaneous, but the approach suffers from a higher gas cost. 

In contrast, Arbitrum offers a fine-combing approach to carrying out transactions mainly on Layer 2. Due to a multi-round fraud-proof, the validation takes time, but this helps reduce the gas fee.

 is a DeFi scaling solution. Unlike Optimism, it's a sidechain, not a Layer 2 solution. Sidechains run parallel to Layer 1, and they have a built-in security framework that doesn’t rely on Ethereum. This is quite different from Optimism, which relies on Layer 1 of Ethereum for the security of transactions.

 used by Ethereum, so it's easy to outsource smart contracts to Polygon. The Polygon model relies on MATIC tokens to secure the Polygon Network and pay the transaction fee. Therefore, users need to swap Ether for the protocol's native MATIC token.

While the Polygon model has gained significant attention from the crypto community, some users complain about long transfer times, and the reliance on blockchain security in the hands of few actors.

. The letters “zk” stand for “zero knowledge,” which means that one party can prove to another party that they possess certain information (i.e., transaction details) without revealing what that information is. 

To prove the validity, each batch of transactions is sent to an off-chain prover generating a cryptographic proof, known as a SNARK (which stands for 

). The proof is subsequently posted on Layer 1.

Although zkSync and Optimism are somewhat similar, zkSync uses a somewhat complex methodology to validate a batch of transactions. The model is not conducive to building DApps, and different ZK-Rollup applications can't interact with each other on Layer 2. On a positive note, zkSync ensures both a much higher throughput and lower cost without sacrificing security.

 of the Optimism network. It’s used to power the 

 by creating a valuable and healthy ecosystem for its users. The OP token accrues value for token holders, and rewards contributors and developers while incentivizing its users and community through airdrops. 

An airdrop is a marketing technique used by a project’s management team to raise awareness about a relatively new cryptocurrency. As a result, token holders and potential contributors get free tokens “dropped” to their wallets. 

While the number of tokens distributed to wallets may differ depending on various contributing factors, these airdrop events remain very popular among crypto enthusiasts who wait patiently to receive such rewards.

The Optimism team released the first batch of OP tokens in an airdrop on Jun 1, 2022. According to its white paper, a total of 

 were eligible to claim this initial OP airdrop. 

Despite high demand, this first airdrop wasn’t without its share of drama and controversy. About a week before the initial drop, the Optimism team 

, which caused an uproar from some disqualified users who claimed they’d lost their eligibility despite interacting with the platform. 

Furthermore, one of Optimism’s community members, 0xJohn, 

 that all initial recipients of the OP airdrop who sold their OP tokens should be disqualified from future airdrops. The Optimism governance forum initially brought down the controversial post but later restored it after users protested on Twitter. 

 a surprise airdrop to its users. A total of 11.7 million OP tokens were automatically sent to over 300,000 unique addresses of users who had positively participated in the network’s governance. 

The Optimism team has yet to announce its third round of OP airdrops. However, the community is hopeful that it will happen as stipulated in the project’s white paper. After airdrop #2, 13.73% of the initial total supply is still available for future airdrops. 

Optimism has a total supply of 4,294,967,296 OP tokens. Of these, 19% were set aside for airdrops, of which 5% were released in the first airdrop and approximately 0.27% in the second one. 

According to the official website, OP token allocations are divided into five categories. The lion's share of OP tokens is allocated to the Ecosystem Fund, which represents one-fourth of the entire share.

Below is a brief summation of the overall circulating supply:

 seeks to utilize all the tokens by the end of Year Four. However, the actual unlocked amount depends on various contributing factors.

As of Jul 19, 2023, the price of OP was $1.49, a 53.92% drop from its all-time high (ATH) of $3.22 on Feb 24, 2023, and more than a 250% increase from its all-time low (ATL) of $0.40 on Jun 18, 2022.

Price prediction experts are highly bullish on OP. Leading price forecasting website 

 OP will hit $4.35 in 2025, and achieve a maximum price of $28.33 by 2030. Another prominent platform, DigitalCoinPrice, shares 

, forecasting OP’s price to reach $5.35 in 2025 and $15.59 in 2030. 

Can Optimism reach $100? It could — if it follows a moderate growth trajectory in the future coupled with the continued growth of the Ethereum ecosystem. It’s also one of the best L2 blockchains driving Ethereum’s scalability, and is deemed a favorable asset to hold for long-term investors. 

That said, the above isn’t financial advice and doesn’t guarantee OP’s future price. Always 

 before you buy any token, including Optimism. 

What Is Optimism (OP): The Simple Layer 2 ETH Scaling Solution

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