Our monthly report delves into insights from options volatility to inspire your next crypto move.

: April 2025 saw BTC's implied volatility surge above 75% due to tariff chaos, but it collapsed to 35% within a week, indicating a surprising short-term drop in volatility expectations despite ongoing macro uncertainty.

: BTC's return above $100K was met with muted enthusiasm in the derivatives market, suggesting that 

traders no longer view this level as a significant psychological barrier, and the rally isn’t likely to be sustained.

: ETH significantly outperformed BTC with a 23% rally, leading to increased demand for short-dated calls and a positive shift in the options market, highlighting renewed bullish sentiment.

: Historical trends suggest a potential summer lull in volatility in store for BTC, raising questions about whether this pattern will repeat in 2025 amidst ongoing macroeconomic challenges.

Bitcoin’s volatility plunges in late April

April 2025 witnessed significant volatility in the cryptocurrency market, particularly influenced by US trade policies. As President Trump announced steep reciprocal tariffs, the crypto landscape experienced sharp fluctuations. Bitcoin (BTC) initially demonstrated resilience, despite widespread sell-offs in equities and the US dollar, only to succumb to a decline from $88K to $75K by early April. This period was characterized by a dramatic rise in implied volatility that peaked above 75% as traders sought protection through short-dated puts. However, as the tariffs faced moderation, implied volatility plummeted to 35% by mid-April, marking the lowest level since early March.

Interestingly, while short-tenor volatility collapsed, 

the back end of BTC's term structure remained elevated, signaling that market participants expect heightened volatility in the mid-term

. Amidst this backdrop, realized volatility fell below the five-year seasonal average, paralleling similar trends in previous years and suggesting a 

. The historical pattern contrasts that BTC often experiences a rebound in volatility heading into May, raising questions about whether this trend will persist.

Subdued derivative response suggests Bitcoin rally might not endure

The market's reaction to BTC's resurgence above the $100K threshold was notably subdued compared to previous instances. While BTC rallied 20% following the initial tariff sell-off, the derivatives market displayed a muted response. The 25-delta put/call skew, a measure of market sentiment, indicated only a slight bias toward out-of-the-money calls, contrasting sharply with sentiment previously when BTC first breached the $100K mark in December 2024. This lack of exuberance suggests that traders no longer view $100K as a significant inflection point, raising concerns about the sustainability of the rally. 

Meanwhile, funding rates and implied volatility — though still bullish — didn’t reach the extremes observed in earlier months, indicating more cautious market sentiment. The relationship between BTC's spot price and implied volatility suggests that although traders are optimistic, they’re waiting for BTC to approach previous all-time highs before adjusting their volatility expectations.

Ethereum's option data points to further rally

In stark contrast to BTC, Ethereum (ETH) displayed remarkable resilience and outperformed major cryptocurrencies, gaining 23% overnight following favorable trade news. This rally catalyzed a surge in demand for short-dated calls, pushing front-end volatility expectations significantly higher. The response from the derivatives market was robust, inverting the term structure and indicating renewed bullish sentiment toward ETH, even as it’s trading well below its all-time high.

The ETH options market exhibited a shift from neutral to slightly negative skew, to a 10% bias favoring out-of-the-money calls, reflecting the market's confidence in ETH's potential to regain lost ground. Despite overall macroeconomic uncertainty, the demand for ETH options suggests that traders are optimistic about Ether’s future price movements.

In conclusion, April 2025 highlighted the complex interplay between macroeconomic factors and cryptocurrency market dynamics. While BTC faced challenges in eliciting strong responses from derivatives markets upon recrossing the $100K threshold, ETH's performance indicated a divergence in market sentiment. As traders navigate the evolving landscape, the potential for seasonal volatility patterns and the influence of macroeconomic developments will remain critical factors in shaping future market expectations.

Advanced

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Bybit X Block Scholes options volatility report (April 2025): Data suggests Bitcoin rally might not endure, but Ether sees further upside

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.

After mostly trading sideways at the end of April 2025, a US-UK trade deal sparked a crypto rally. BTC surged past $100K for the first time since February, but it’s ETH's performance that captured the derivatives market's attention. 

A 23% increase in ETH's spot price led to an inverted term structure and a spike in front-end volatility. The put/call skew for ETH shifted from a bearish bias to a nearly 10% skew toward OTM calls. Other sentiment indicators, such as perp funding rates and futures yield, also supported the rally. In contrast, while BTC's funding rates and skew have increased, its implied volatility remains low at 40%, over 30 points below ETH's 7-day implied volatility.

Please check out the report’s highlights.

ETH’s record performance since 2021 was propelled by positive term structure

ETH has significantly outperformed BTC and the top 10 cryptocurrencies, marking its largest single-day gain since May 2021. The options market has reflected this enthusiasm, with implied volatility for short tenors rising sharply and inverting ETH’s term structure, thus contrasting with BTC's muted, positively sloped structure. The 7-day tenor for ETH is now trading at a 33-point premium over that for BTC. 

While puts dominate BTC's open interest, ETH is seeing the opposite trend. On May 8, 2025, options volumes surged over $120M, more than double the typical monthly volume, with $60M more in calls than puts. ETH now boasts a positive futures curve and funding rates, as well as a strong skew toward OTM calls.

ETH sees exceptionally bullish put/call skew

ETH's substantial outperformance in the current crypto rally has led to bullish sentiment in its derivatives markets. Funding rates have surged, futures yields are strongly positive and the put/call skew has shifted significantly toward OTM calls, now close to 10%. This starkly contrasts with early April, when the skew was 20% toward OTM puts. Although ETH has underperformed (relative to BTC and other "ETH killers"), it has rebounded in this rally, with the ETH/BTC ratio rising after spending most of the year declining.

Open interest for Bitcoin options increased, with implied volatility remaining suppressed

The announcement of the new US administration's first trade deal, nearly 30 days into Trump's 90-day tariff pause, jolted crypto markets, pushing BTC back up above $100K. Surprisingly, implied volatility has remained suppressed, failing to invert BTC's term structure, with front-end volatility trading at around an 18-month low of 35-40%. On May 8, 2025, options volumes surged, with call volume reaching $189M, reversing last week's trend of higher put volumes. Meanwhile, open interest rose steadily to exceed $300M, the highest level this month, but remains significantly larger for puts than for calls despite the price increase.

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Bybit X Block Scholes crypto derivatives analytics report (May 9, 2025): Ether’s put/call skew turns remarkably more bullish than Bitcoin’s

This article explores how Sign works, its flagship products (such as TokenTable, SignPass and EthSign), its native token (SIGN) and how to trade SIGN on Bybit.

Sign is an omnichain attestation infrastructure that empowers users and developers to verify real-world claims on-chain. Built for a more transparent and decentralized future, it eliminates the need to “just trust” and enables everyone to verify with cryptographic proof.

This article explores how Sign works, its flagship products (such as TokenTable and EthSign), its native token (SIGN) and how to trade SIGN on Bybit.

 is an omnichain attestation protocol designed to make it easy for anyone to verify the authenticity of any claim — 

. Whether it’s a document, credential or user identity, Sign transforms traditional trust models into verifiable, cryptographic attestations. 

Sign’s mission is to replace outdated, opaque validation systems with transparent, 

 proof — enabling a future where “verify” replaces “trust.” Through tools like schema registries and digital signatures, Sign empowers users to bring accountability and integrity to digital interactions.

Sign is developed by the team behind EthSign, a 

-native e-signature and agreement platform. Its core team brings deep experience in 

 development and cross-chain integrations.

The project is backed by top-tier investors, including Sequoia Capital China (now known as HongShan Capital Group), Mirana Ventures, HashKey Capital and Hack VC.

This strategic funding positions Sign as a foundational layer in the web3 infrastructure stack.

Sign allows users to create attestations — cryptographically signed statements that prove the validity of claims, such as credentials, achievements or actions. These digital proofs can be verified by anyone at any time, making them tamperproof and transparent.

Sign’s key technical elements include a schema registry that ensures consistent data formatting, digital signatures proving authenticity, and on- and off-chain attestations with support for revocation or updates

This system acts like a programmable layer for web3, bringing a new level of trust to identity, credentials and data exchange.

TokenTable is Sign’s flagship token distribution platform. It helps projects unlock, distribute and manage tokens transparently and securely at scale.

It uses Sign’s attestation engine to verify token unlocks, 

 and vesting schedules, ensuring traceable, auditable token flows.

SignPass is a blockchain-based identity solution that brings real-world credentials on-chain. One notable implementation is the Sierra Leone PR Card, used for the world’s first government-approved on-chain permanent residency program.

SignPass offers encrypted on-chain records for easy 

 verification, physical ID issuance for daily identity use and streamlined digital application systems for cross-border access.

It showcases the way blockchain can modernize public sector services worldwide.

EthSign is a decentralized contract signing platform that lets users create, sign and store legally binding agreements directly on-chain. It removes intermediaries and ensures documents are immutable and accessible.

EthSign reinforces Sign’s mission by bringing traditional documentation into the realm of verifiable web3 attestations.

The SIGN token is the native utility token powering the Sign ecosystem. It’s used for:

The total supply is capped at 10 billion SIGN, with 1.2 billion tokens in circulation. While the fully diluted valuation (FDV) sits above $746 million as of May 7, the circulating market cap is approximately $89.6 million. SIGN continues to gain traction across exchanges and developer networks.

SIGN is available for trading on Bybit via Spot trading and as a USDT Perpetual contract. Bybit offers up to 75x leverage for the SIGNUSDT Perpetual contract and supports secure, high-liquidity spot trading.

Start exploring the future of attestations with SIGN on Bybit today.

Intermediate

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Sign (SIGN): Web3 protocol for trustless attestation

Compliant trading means following platform rules and avoiding manipulative behavior. Learn more about how you can trade responsibly and compliantly on Bybit.

Crypto trading has come a long way from what used to be the domain of institutional players, and is now open to almost anyone with an internet connection. It’s easier than ever to buy and sell digital assets, try new strategies or build a portfolio from scratch all within minutes.

But with that level of access comes responsibility. As more people join the market, the need for fairness and accountability has become even more important. This isn’t just about price charts or profits — it’s about keeping the playing field level for everyone involved.

At Bybit, we take that responsibility seriously. We're here to offer the tools, safeguards and education you need to help you trade responsibly and to protect the platform from misuse.

This article describes what it actually means to trade compliantly, why it matters — and what can happen if things go off course.

Compliant trading means playing fair, following the platform’s rules, staying within the boundaries of what’s allowed and avoiding anything that could unfairly affect the market.

It’s not about avoiding risk: it’s about knowing what you’re doing, using official tools the right way and making sure your trades aren’t causing harm to yourself or others.

In short, compliant traders don’t just focus on their P&L — they understand that how they conduct themselves while trading matters. Responsible trading protects their accounts, keeps the platform stable and builds long-term credibility in the crypto ecosystem.

Why does responsible and compliant trading matter?

It’s easy to assume that compliance is only something platforms or regulators need to worry about. But in reality, every trader plays a part. When someone attempts to exploit the system — for example, by coordinating mass trades through off-platform channels — the consequences can ripple across the entire market.

In extreme cases, irresponsible trading behavior can:

And if the trades in question are linked to coordinated action, use of fake accounts or external bots? That opens the door to account freezes, compliance reviews and, in some cases, permanent suspension.

Bybit has a responsibility to act when the system is being abused — not just for legal reasons, but in order to protect honest traders.

Common examples of noncompliant or risky behavior

Some traders join Telegram groups or online communities in which KOLs (key opinion leaders) give out coordinated trading instructions (for example, “Buy token A now, sell it in an hour”). This practice isn’t just risky: it often involves a small number of insiders benefiting while the majority end up with losses.

When many people follow the same instruction all at once, it can artificially inflate the price of a low-liquidity token. The KOLs then exit at the top —while others are left with falling prices and unexpected liquidations.

Such a textbook case of market manipulation violates our Terms of Service and, depending upon jurisdiction, could violate financial laws.

Using bots or unverified trading strategies

Some Telegram groups may seem convincing, but trades coordinated off-platform are often unverified and may serve someone else’s agenda. 

 programmed to front-run trades, mimic pump-and-dump strategies or follow unverified signals can trigger compliance red flags and may lead to account restrictions.

Bybit does not support trading bots from unverified sources. They can also trigger flags in our monitoring systems, which may result in account suspension.

Using another person’s account or sharing login credentials — even if it’s with a family member — goes against both Bybit’s policies and global 

(AML) rules. It also opens the door to fraud, loss of funds and irreversible penalties.

Tips for responsible and compliant trading on Bybit

The good news is that there’s a better way to trade — responsibly, safely and with confidence, starting with the right tools, mindset and habits.

Use copy trading the way it’s meant to be used

 is one of Bybit’s most trusted features, and for good reason. It gives users access to professional traders’ strategies while maintaining full transparency. However, it only works if you follow verified 

These traders have been vetted and their stats are fully visible. You can view their P&L, risk settings and trade history. Bybit also provides built-in tools, such as 

 and staking products allow you to earn passive yield with minimal effort. These products are fully backed by our infrastructure and undergo regular audits, and are a compliant way to generate returns without chasing risky trades.

No matter how convincing a Telegram group may sound, remember that trades executed outside of regulated channels are unverified and often unaccountable. They may be coordinated for someone else’s gain.

 offers a wide range of articles and tutorials, covering everything from indicators and oscillators to advanced portfolio strategies. Before following any external signal, it’s worth spending 10 minutes to understand the rationale behind it. In trading, knowledge is your best form of compliance. Before you enter any position, ensure that you fully understand the asset you're trading, the current market conditions and the risks involved.

, never share your login credentials, and always enable two-factor (2FA) authentication. In addition, all trading activity should originate from your own account and remain under your own control.

Bybit’s systems are designed to flag irregular behavior. If your account is found to be engaging in prohibited activity, even unintentionally, you may be:

We take these steps in order to protect the broader user base and to uphold market fairness.

Being compliant doesn’t mean missing out on opportunity. In fact, it’s the opposite. It means you’re using the platform the way it was designed, with safeguards, transparency and trust. Shortcuts might look appealing in the short term, but they rarely end well. The most successful traders on Bybit are the ones who understand risk, stay informed and trade with integrity.

Take the time to learn and use the tools available to you. And remember: protecting your account starts with choosing how you’ll trade.

Beginner

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How to trade compliantly and responsibly on Bybit

Bybit Learn

DeFi

Earn high-yield passive income with these best crypto lending platforms and enjoy low-interest loans. Learn more. 

 is becoming a successful alternative to traditional loans. Celebrities like Elon Musk and Bill Gates have endorsed the new 

 (DeFi) revolution. This article explores the concept of crypto lending and offers a list of the best crypto lending platforms.

Crypto lending is a type of financing that allows a cryptocurrency holder to lend their crypto to others in return for interest payments.

The concept is quite similar to traditional banking. In a conventional setup, you lend money by providing liquidity to your bank through a savings account. In return, it pays regular interest on your savings and guarantees the safety of your funds. (In decades past, banks used to pay interest rates of 2–3% on savings accounts, and even significantly higher. Recently, savings account interest rates have been negligible, in some cases 0.01%.)

Similarly, in a DeFi environment, the cryptocurrency holder lends the cryptocurrency to a borrower in exchange for a guaranteed 

 (APY) or annualized percentage rate (APR) ranging from 5% to 12% in most cases.

In this setup, there are three stakeholders:

The lender benefits by earning interest, while the borrower benefits from the crypto liquidity or asset instantly without going through traditional financing sources. Likewise, the crypto lending platform profits by charging a small service fee to the borrower.

Anyone who holds a cryptocurrency can earn passive income by lending the crypto asset to others. The interest rate paid to the lender differs based on the coin and the deposit terms. It's usually between 3% and 15%. Supply and demand determine the interest payout. If the demand is high and supply is low, the interest payout will be higher, and vice versa.

However, there are a few factors that influence the final yields. For example, the longer the duration of lending, the higher the APY. Sometimes, the APY is variable and keeps on changing with 

As opposed to conventional banking, a crypto lender isn't concerned about who gets the loan. Based on the rules set by individual crypto lending platforms, the loan amount is disbursed automatically to a borrower once that borrower fulfills the requirements for the loan.

You must go to a crypto lending platform to request a loan when borrowing a cryptocurrency. The platform requires crypto collateral from you to secure the loan it offers.

) is 50%. As a borrower, you can get a loan of 50% of the total amount of collateral. For example, if you deposit $10,000 in crypto as collateral, the loan would be $5,000. As soon as the loan is paid in full, you'll get back the $10,000 you left as collateral.

Crypto Loans vs. Crypto Lending: Differences

Crypto loans and crypto lending involve similar concepts within the crypto space. However, while they both involve borrowing and lending crypto assets, there are some important differences between them. 

: This involves individuals who are willing to deposit their cryptocurrency into a lending pool, which then lends these funds to borrowers in exchange for a profitable interest payment. As a result, crypto holders can earn passive income by lending their crypto assets to other users. 

: Borrowers use their crypto assets as collateral to secure loans. Essentially, a borrower loans their assets to a lender, who lends them money, and the borrower pays back the lender with interest. Once the borrower repays the loan, they can retrieve their crypto assets from the crypto loan providers.

Essentially, crypto lending is when lenders provide funds to borrowers and earn interest on the loaned amounts. In comparison, crypto loans involve borrowers taking loans with collateral in exchange for crypto liquidity.

How to Select a Cryptocurrency Lending Platform

With the growing popularity of crypto lending, it’s crucial to choose a reliable, secure platform that aligns with your financial goals. Following are some factors to consider when selecting a cryptocurrency lending platform.

: Do thorough research on the reputation of the lending platform. Look for a platform that has positive reviews and a solid track record, and is  well-established in the industry. Check their regulatory compliance, and whether they have any partnerships with reputable institutions.

: Security should be a top priority when dealing with cryptocurrencies. Look for platforms with robust security measures, such as two-factor authentication (2FA), cold storage of funds and insurance coverage for digital assets. Ensure that the platform follows best practices to protect their users' funds.

: Compare the interest rates offered by different lending platforms. Higher interest rates may seem attractive, but be cautious of platforms offering unusually high returns, as they may come with additional risks. 

Look for platforms that offer competitive rates that align with the market.

: Consider the lending terms and conditions offered by the platform. Look for flexibility in loan duration, interest payout duration, and the ability to customize loan terms to suit your needs. 

: Check to see which cryptocurrencies the platform supports for lending. Ensure that the platform supports the cryptocurrencies you hold, or wish to borrow. A diverse range of supported cryptocurrencies allows for more flexibility when you’re selecting lending opportunities.

: A platform with high liquidity ensures that you can easily deposit and withdraw your funds. Additionally, a platform with high loan demand indicates that there are active borrowers, increasing the likelihood of earning interest on your loaned funds.

: Look for a lending platform that provides transparent and detailed reporting on your loans, interest earnings and collateral. Transparency allows you to monitor and track your investments effectively, giving you peace of mind.

: Consider the level of customer support provided by the platform. Look for a platform that offers responsive customer support channels, including email, chat or phone. Good customer support ensures that your concerns or issues are addressed promptly.

Before reviewing your options, it's important to understand the difference between APY (annual percentage yield) and APR (annualized percentage rate). You'll likely see these two terms used simultaneously, often confusing loan seekers and lenders.

APY refers to the interest earned on your savings, while APR is the interest you owe to a lender. APY includes the rate that you'll earn in a year. Keep in mind that APY utilizes 

. In contrast, APR consists of the interest rate in addition to any fee that you'll pay to borrow the loan.

Crypto lending is beneficial for both lenders and borrowers. From a borrower's perspective, the main advantages are:

Of course, crypto lending has its advantages. You can earn a much higher return rate than traditional investment accounts. In most cases, you can stop funding anytime without any restrictions. Accordingly, you can also use multiple crypto assets to enhance your portfolio returns.

Crypto lending exposes you to inherent risks, some of which are as follows:

The best crypto lending platform that suits your risk appetite is highly dependent on your preferences. Here are some that may pick your interest:

 is an EU-licensed and regulated institution. It currently manages assets of approximately 4 million users in nearly 200 jurisdictions.

Lenders can earn up to 16% interest, paid out daily. To start earning, you only need to buy or transfer crypto to your Nexo account. Irrespective of conditions, the APR never exceeds 13.9%. The funding is approved within seconds and transferred to your Nexo account in less than 24 hours.

The only downside to the platform is the learning curve. There are few educational resources, which means that you may need to contact support to get answers.

Verdict: Nexo is among the best crypto lending platforms for low-interest loans.

 offers Bitcoin loans to individuals and businesses in the United States.

To safeguard customers' interests, their business model uses 

. Unlike other lenders that loan Bitcoin to third-party custodians, Unchained Capital funds Bitcoin to dedicated multisig vaults. Not only are you in charge of the title, but you can also prove cryptographically that your Bitcoin is stored in a dedicated address at all times.

Their minimum APR is 12.58%, with an estimated LTV ratio of 40%. The APR varies between 12.58% and 15.42%, but your Bitcoin isn't put at risk.

At this time, Unchained Capital only serves in the United States.

Verdict: Unchained Capital is among the best crypto lending platforms to safeguard your assets.

21 Best Crypto Lending Platforms to Look Into in 2023

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