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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; and futures, options and perpetual contracts.
This week’s dip in spot prices has nudged short-tenor BTC and ETH options toward a slight volatility premium for out-of-the-money (OTM) puts, hinting at bearish sentiment. This runs counter to the continued bullish stance in perpetual futures markets, where funding rates for BTC, ETH and other tokens have remained consistently positive.
BTC has remained range-bound between $115K and $120K, briefly touching the lower limit on July 25 following a sale of 80,000 bitcoins by Galaxy Digital from a “Satoshi-era investor.” Although BTC quickly bounced back from that low, it has yet to break above the $120K ceiling. On the same day, open interest in BTC and altcoin perpetuals rose sharply, surpassing $15.5B.
In the options space, ETH’s flat term structure contrasts with BTC’s upward-sloping volatility curve, while short-tenor volatility smiles point to a bearish-to-neutral tone for both assets. Meanwhile, SOL stands out with an inverted term structure and a 9% drop in spot price over the past seven days.
Please check out the report’s highlights.
Sources: Bybit, Block Scholes
Altcoins posted mixed results this past week, following an earlier dip in BTC dominance that briefly sparked hopes of an altcoin season. However, the catch-up rally appears to have prompted profit-taking, pushing prices lower — for instance, XRP fell 11% and SOL dropped 10% since July 23, 2025. ETH and TRON bucked the trend among top altcoins, gaining over 3% and 5% (respectively).
Despite the pullback, funding rates remain firmly positive. BTC and ETH haven’t seen a single negative eight-hour funding rate since July 7, 2025, while DOGE and XRP surged past 0.03% amid strong sentiment. Meanwhile, XRP rallied alongside other payment tokens following the US enactment of the GENIUS Act, and DOGE’s price has climbed 34% over the past month.
Sources: Bybit, Block Scholes
ETH’s price has eased to just below $3,800 after peaking at its highest level since December 2024. It's up 3.5% over the past week, outperforming flat BTC. ETH options volume has held above $120M, with $100M more open interest in calls than puts. Implied volatility across all tenors sits at a compressed 64%. Meanwhile, derivatives markets show long-term bullish sentiment: Funding rates have been positive since early July, volatility smiles favor OTM calls and Spot ETH ETFs continue accumulating — adding $218.6M worth on July 29 alone.
Sources: Bybit, Block Scholes
BTC and ETH short-term options reflect a slightly bearish-to-neutral sentiment, diverging from the bullish tone in perpetual futures. ETH’s 7-day put-call skew sits at −3.6%, while longer expirations remain firmly bullish. BTC’s 7-day volatility smiles are flat, with 14-day options showing a modest 0.5pp tilt toward OTM puts. In contrast, perpetual swap funding has stayed consistently positive since early July, signaling strong long interest and appetite for upside spot exposure.
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