Bybit X Block Scholes Crypto Derivatives Analytics Report (Oct 23, 2024): Calm Market Expected Before U.S. Election as 7-Day ATM Volatility Plunges

Key Highlights:

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

With just two weeks until the election, at-the-money (ATM) implied volatility for 14-day tenor options has surged, despite an overall downward trend in implied volatility. This has created a notably steep term structure. Sentiment remains bullish, as indicated by key metrics: open interest in both futures and call options is increasing, and funding rates are positive across all monitored tokens, not just BTC and ETH. 

As the U.S. election is approaching, the market is expected to be calm, suggesting Bitcoin’s $70K level might be visible only after November.

Please check out the report’s highlights.