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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.
Macro movements shifted spot prices over the weekend, continuing crypto's January 2025 trend of influencing Monday's equity moves. However, this week's reactions were less pronounced, as indicated by lower implied volatility, even amid brief inversions in the volatility term structure. A high mid-week CPI print had minimal impact on spot prices, as reflected by weak sentiment indicators in derivatives markets, including volatile funding rates in altcoins, stagnant open interest in futures and options and a decline in the bullish skew of longer-tenor volatility smiles.
In perpetual swap markets for major tokens, open interest remains stable, though funding rates have often been volatile and negative. Meanwhile, despite several inversions in ETH’s term structure, volatility expectations have decreased over the past month.
Please check out the report’s highlights.