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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.
The U.S. presidential election is creating a volatility premium for options expiring after Nov 5, 2024. While longer-term volatility smiles have consistently favored out-of-the-money (OTM) calls, short-term options have recently mirrored this trend. This suggests that the decline in spot prices at the end of September hasn’t significantly dampened sentiment in the derivatives markets.
Futures: The expiration of the quarterly contract at the end of September resulted in a notable decrease in open interest, as many traders chose not to reopen their positions.
Perpetuals: Despite the drop in open interest during the spot price fluctuations at the end of September, a positive funding rate across markets indicates underlying strength.
Options: The U.S. presidential election remains a key focus for narratives and market positioning. Notably, ETH implied volatility is trading 10 points higher than that of BTC across various maturities, even as the realized volatility for both assets is trending downward.
Please check out some of the report’s highlights.