Bybit x Block Scholes Crypto Derivatives Analytics Report (Nov 3, 2025): Crypto derivatives remain cautious following the risk asset liquidation last week; WLFI sees volatility following the market

Key Highlights:

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.

A historic $6 billion liquidation on Oct 10, 2025, triggered by renewed US–China trade tensions, dealt a heavy blow to perpetual swap markets, with Bybit traders showing little appetite to re-enter lost positions. Although diplomatic progress led to a signed trade deal, sentiment was quickly overshadowed by Fed Chair Jerome Powell’s hawkish tone during the FOMC press conference. Despite a 25 bps rate cut, Powell warned that further easing in December was “far from” guaranteed, prompting risk-off reactions as BTC dropped to $107K and short-tenor put-call skews tilted sharply bearish, reversing a brief bullish shift in 7-day smiles.

Open interest in perpetuals remains stagnant at around $10B, reflecting post-liquidation caution. In options markets, BTC and ETH volatility skews briefly favored calls, but have reverted to downside bias. ATM implied volatility remains elevated, though term structures for both assets have normalized.