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.

Spot prices have jumped significantly in the two weeks following the November 5, 2024 U.S. elections, propelling Bitcoin to new all-time highs, while Ethereum hasn’t kept pace. The implied volatility term structure has inverted again in tandem with these spot price movements, although longer-dated tenors remain relatively stable. Derivatives market indicators reflect strong positive sentiment: perpetual funding rates are consistently positive, open interest in futures contracts is rapidly increasing and options skew remains firmly positive.

Open interest in futures has surged, indicating heightened market participation and a growing interest in leveraged exposure due to recent price movements. Similarly, open interest in perpetual contracts has sharply increased, fueled by rising trader confidence and a growing demand for leveraged positions in light of recent market rallies. Meanwhile, the implied volatility term structure continues to invert in alignment with spot price increases, demonstrating a sustained correlation between spot prices and volatility.

Please check out the report’s highlights.

Futures Open Interest Reaches ATH Along With Price

Perpetual swap open interest has been increasing alongside futures, with a consistent rise in open positions over the past week reaching all-time high activity levels. This trend suggests that traders are actively pursuing leveraged exposure in response to the ongoing spot rallies, aiming to capitalize on the rising spot prices. Notably, there’s been renewed interest in Ethereum (ETH), reflected in rising trading volumes. 

Perpetual swap funding rates have reached exceptionally positive levels, indicating that long positions are confident enough to pay these rates to sustain their leveraged exposure. This trend has consistently been observed across all tokens, with a noticeable rise in funding rates since Nov 10, 2024. The persistently high funding rates highlight the strength of the bullish sentiment, which is also evident in the increasing open interest in futures contracts. This aligns with the recent spot price action, demonstrating significant upward momentum.

Option Volatility Term Structure Inverts 

The implied volatility term structure for Bitcoin has inverted amid the recent spot rallies over the past few weeks, indicating heightened market uncertainty and expectations of imminent price movements. However, levels haven’t exceeded the highs seen before the elections, and longer-dated tenors remain firmly range-bound. Concurrently, open interest in Bitcoin options has risen significantly, with a notable increase in put trading volumes. Open interest in puts has slightly surpassed calls, despite the persistently bullish market outlook indicated by the volatility smile skew.

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Bybit X Block Scholes Crypto Derivatives Analytics Report (Nov 20, 2024): Market Becomes Extremely Positive About Bitcoin as Volatility Curve Turns Invert

Learn how to join Bybit's VIP Program, where you can realize exclusive benefits — from up to 50% off trading fees and tailored interest rates to instant OTC trades up to $10M.

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The Bybit VIP Program offers a multitude of benefits for members. These range from discounted trading fees and high limits for withdrawals and application programming interface (API) trades to priority Bybit customer support access, relationship managers and exclusive VIP events and meetups. You can find the full list of VIP exclusive benefits 

Requirements to Become a Bybit VIP Trader

You’ll need to fulfill a specific level for one of the criteria below to become a VIP trader on Bybit:

Bybit's VIP Program features six distinct tiers: 

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How to Sign up to Become a Bybit VIP Trader

In the following section, you'll find a step-by-step guide that shows you how to join the Bybit VIP Program.

The first step to becoming a VIP trader is to open a Bybit account (if you haven't already done so). Simply 

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You can deposit cryptocurrencies by using the 

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After you have a verified Bybit account funded with either crypto or fiat, perform eligible activity on the platform until you qualify for VIP status (see table below).

You can achieve VIP status by fulfilling a minimum level of VIP 1 in either of the following categories (

After becoming a VIP trader on Bybit, don't forget to maintain your VIP status to continue enjoying the exclusive perks and benefits.

If you have active VIP status at another crypto exchange, or your total MT5 trading volume meets Bybit's VIP criteria, you can apply for a VIP+2 upgrade. This upgrade will grant you VIP status on the platform — and instantly elevate it by two levels. (Please 

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 and submit your 30-day trading volume on your current exchange. Bybit’s VIP team will review your application, and a Relationship Manager will contact you if you're eligible for the VIP upgrade.

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Another way to qualify for VIP status on Bybit is through a 20-day trial. Instead of fulfilling the requirements of the VIP 1 level, simply fund your account with $50,000 to enjoy the exclusive benefits of the program for 20 days with a VIP Trial Card (issued one day after your deposit). The VIP trial offer is available to users who haven't used a trial within the past two months.

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Intermediate

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How to Become a Bybit VIP: Your Guide to Exclusive Benefits

LETSTOP is a drive-to-earn mobile app that monitors phone distractions while driving. Learn more about how it works in this article.

Smartphone distractions have created an unprecedented road safety crisis worldwide. 

: texting behind the wheel makes drivers six times more likely to crash than drunk driving does — yet millions of drivers still use their phones while operating vehicles.

This article explores how LETSTOP is transforming safe driving into rewarding experiences through blockchain technology. We'll examine its drive-to-earn model, reward system, tokenomics and potential as both a road safety solution and an investment opportunity.

 is a drive-to-earn mobile app that monitors phone distractions while driving. Users earn STOP tokens for phone-free driving through a gamified system that transforms daily drives into rewarding experiences.

A life-changing car accident caused by a distracted driver running a red light inspired LETSTOP co-founder Almog Nissan to reimagine road safety. Together with co-founder and CEO Dor Levy, they envisioned rewarding safe driving, rather than just punishing dangerous behavior.

The founders built a platform that combines automotive technology, cryptocurrency and AI to revolutionize road safety through rewards. This innovative approach has quickly gained traction, with over 50,000 users logging over 3 million kilometers of safe driving since the app’s launch.

Distracted driving claims thousands of lives annually, with 

, of which 9% are directly linked to phone use. LETSTOP aims to tackle this crisis as follows:

Each of these objectives works harmoniously to support LETSTOP's ultimate mission of transforming road safety into a rewarding experience that benefits both individual drivers and society.

The LETSTOP app operates through a sophisticated system that monitors and rewards safe driving through the following apps and features:

The result is a dynamic system in which better driving habits unlock greater earning potential.

The following five core features power LETSTOP's drive-to-earn ecosystem.

LETSTOP uses a dynamic 40-level system to make safe driving rewarding. As drivers earn XP through distraction-free journeys, they advance from Level 1's 2% bonus toward Level 40's 70% boost. Through this gamified approach, daily commutes become opportunities to climb the ranks while building safer driving habits.

LETSTOP Credits are the core currency of the platform, earned directly through safe driving achievements. Earning rates directly scale with user level, vehicle type and subscription tier as follows: PRO subscribers enjoy unlimited earning potential, while PLUS and LITE tiers are capped at 300 and 150 monthly credits, respectively.

In the STOP Store, users invest their earned credits into virtual cars with unique earning multipliers. From the basic model's 2% bonus to the Jazzster GN's 150% boost, each vehicle offers different strategic advantages for maximizing rewards.

Beyond vehicles, the store features mystery boxes containing rewards from 10 to 450 credits, as well as car upgrades and subscription boosts. Users can also access a voucher marketplace to redeem credits for real-world rewards through LETSTOP's partnership network.

LETSTOP's triple-boost system combines vehicle multipliers for immediate earnings acceleration, a level-progression system for sustained growth and a 5% referral program for community expansion. Premium membership unlocks enhanced benefits across three tiers, while special events create time-limited opportunities for increased rewards.

The platform's comprehensive rewards system operates across three membership tiers, each one tailored to different user needs. LETSTOP PRO (at $9.90 monthly) offers unlimited credit earning potential and exclusive benefits. The PLUS tier provides a balanced option at $4.90 monthly with a 300-credit earning cap, while the free LITE tier allows users to earn up to 150 monthly credits.

Beyond direct earnings, the rewards system incorporates partner vouchers, cryptocurrency conversion options and community features, such as leaderboards. Achievement rewards recognize milestones in users' safe driving journeys, while the upcoming cryptocurrency integration will allow users to convert their efforts into tradeable STOP tokens.

LETSTOP has shown consistent progress, with the following key milestones already achieved:

Looking ahead to 2025, LETSTOP plans to implement the following key developments:

These developments aim to strengthen LETSTOP's position as a leader in drive-to-earn while furthering its mission to enable safer roads worldwide.

STOP is an SPL token built on the Solana network. It’s designed to bridge safe driving behavior with cryptocurrency rewards. The STOP token implements an annual halving mechanism to ensure long-term value preservation, similar to Bitcoin's model, but accelerated to align with the project's growth trajectory.

STOP has a max supply of 100 million tokens, to be distributed in the following manner:

The growing adoption of LETSTOP's drive-to-earn app and its impact on road safety directly influence STOP's price trajectory. While cryptocurrency forecasts remain speculative by nature, multiple price analysis platforms project the following for STOP:

These forecasts suggest a positive long-term outlook for STOP, driven by the growing drive-to-earn sector and LETSTOP's innovative approach to road safety. However, STOP's future value will ultimately depend upon user adoption, platform development and broader market conditions.

Looking to trade LETSTOP tokens? Bybit now offers the STOP/USDT Spot trading pair. To get started, you’ll first need to create a Bybit account, then fund it with cryptocurrency and navigate to the 

STOP shows promising potential in the drive-to-earn sector, though investors should carefully weigh both its strengths and potential risks before making investment decisions.

While STOP's innovative approach to road safety and its strong initial traction distinguish it in the market, potential investors should 

 and invest no more than they can afford to lose.

As smartphone distractions continue to endanger lives on roads worldwide, LETSTOP offers an innovative path forward. Through its innovative drive-to-earn model and STOP token ecosystem, the platform transforms daily commutes into safer roads and user earnings opportunities, showing how digital innovation can effectively “drive” positive behavioral change.

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LETSTOP (STOP): Turning Daily Rides Into Profitable Journeys

FDUSD, a stablecoin from First Digital Labs, is now live on Sui as a native token, joining other stablecoins like USDC and AUSD.

The S&P 500 ended flat amid mixed earnings and geopolitical concerns, as investors awaited Thursday's data and Fed commentary. Coindesk Indices, an index measuring broader cryptocurrency market performance was up by 2.01%, with Bitcoin rising by 1.91% and Ether dropping by 0.59%, in the past 24 hours.

Today's top performer is LUMIA, which surged 16.1% following the announcement of its partnership with Cobox to bridge real-world assets and virtual ownership.

Lumia (LUMIA), founded in 2024, is a Layer 2 blockchain solution leveraging the Polygon CDK to enhance scalability, liquidity, and interoperability. It addresses challenges like data availability and cross-chain interactions by incorporating AvailDA for decentralized data and Polygon AggLayer for cross-chain functionality, enabling efficient and flexible dApp development. 

 to integrate real-world assets (RWAs) into its immersive, player-owned universe. This collaboration aims to enhance asset liquidity, trading, and gameplay experiences, bridging digital and physical realms for more tangible and vibrant virtual ownership.

Check Out the Latest Prices, Charts, and Data of 

, a stablecoin from First Digital Labs, is now live on Sui as a native token, joining other stablecoins like USDC and AUSD. This launch reflects growing institutional confidence in Sui, which has seen significant growth in TVL and DeFi volume. FDUSD, backed by reserves in Asian banks and US Treasury debt, offers DeFi users a reliable, US Dollar-pegged stablecoin, bridging traditional finance and cryptocurrency ecosystems.

Yesterday, the total flow into Bitcoin Spot ETFs is $146.9 million, with $0 million in GBTC and $146.9 million in non-GBTC products.

: the Spotlight Badge, which requires minting through the Spotlight Protocol and joining a Spotlight circle; the Impossible Finance Badge, which involves completing social tasks, claiming the TIDIA faucet, staking TIDIA on Impossible Finance, and then claiming the badge; and the SNGLR Badge, where users connect their wallet, follow artists, mint IP assets, tweet, and provide personal details to claim their badge. More badges are coming soon!

Beginner

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FDUSD Launches as Native Stablecoin on Sui, Strengthening DeFi Ecosystem

Crypto

Investing

Bitcoin

Inflation, in general, increases the prices of goods and services due to a decrease in purchasing power. While, deflation is the entire opposite, resulting in the decline in the price of an economy.

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Inflation and its opposite, deflation, have an impact on the price of Bitcoin. The general increase in inflation tends to boost Bitcoin’s price. And when the inflation rate turns negative, deflation tends to drive the price of Bitcoin lower.

Due to the COVID-19 pandemic that results in an economic crisis, central banks around the world have been trying to stimulate the economy by printing more money. The world economy is in a cycle where central bankers are reluctant to remove money from the economy and have generally been adding more. As a result, the cycle of money printing has created an impact on Bitcoin’s price.

In economics, inflation is a general rise in the price level of an economy over time. Deflation, on the other hand, is the opposite — namely, the general decline in the prices of an economy.

When you buy a loaf of bread, you’ll pay about $1.37 per pound. About 70 years ago, that bread would have cost $0.14 per pound. The price has increased nearly tenfold over the past 70 years. That price increase is due to inflation. 

A little inflation of prices in an economy is positive. Inflating the prices of goods and services a little bit suggests there is an inherent demand for those products. Otherwise, when an economy experiences deflation, prices readjust lower and businesses lay off employees or go bankrupt, creating a negative feedback loop.

The topic of inflation versus deflation can be confusing to people at times. The reality is that anything can be inflated or deflated — whether a bicycle tire or prices in an economy. Therefore, it’s important to understand what is being referenced when the topics of inflation and deflation are introduced.

Inflation of Fiat Money: Supply and Credit

Most media outlets are referencing the general rise or fall in prices when they discuss inflation. 

For example, the chart above illustrates how prices have inflated over the past 100 years.

When prices inflate, the purchasing power of each dollar decreases.

In the chart above, we can see purchasing power depreciate consistently over the past 100 years. The $10 in 1913 is not the same as $10 in 2021, because what you can purchase with that $10 has changed significantly. You aren’t able to buy as many goods and services with that $10 today as you could almost a century ago.

Inflation and Deflation: Cause and Effect

Could it be that the change in consumer prices is the effect of inflation and not the cause? If so, what is the cause of inflation and deflation?

A better way to look at inflation is the expansion of money in the economy. Let’s oversimplify an example: bicycles. Let’s assume the demand for new bicycles is steady from year to year, and a new bicycle costs an average of $500.

If the amount of money in the system increases by 10%, then the cost of the bicycle will eventually need to increase as well — because there’s more money chasing the same amount of bicycles. The supply of money has increased, so more money is needed to buy the same product.

On the other hand, if the amount of money in the economy decreases, and there’s less money available, people simply wouldn’t be able to pay that much for bicycles. In this instance, the manufacturer would have a hard time selling their bicycles at $500 and would need to drop the price — or risk sitting on unsold goods.

In the bicycle example above, note that the need for bicycles remains constant, but the willingness of people to buy them has changed, depending on how much money is available in the economic system.

Therefore, we can define inflation and deflation as follows:

Deflation within an economy is often seen as an undesirable thing — and for the most part, it is. During the 1930s, the United States experienced deflation of its economy and the effects lingered for a decade.

In 2007–08, the worldwide economy deflated as the banking system seized up, freezing the flow of money around the world. 

However, deflation of consumer prices is not always a bad thing, as it could imply a more productive economy. 

Technology, for example, is deflationary by nature. The cost of a computer has decreased significantly over the past 25 years while the processing power of the computer has increased. 

In essence, you get a better computer today at a cheaper cost than 25 years ago, which is quite deflationary. Those cheaper computers allow us to be more productive — and to invest in other creations.

There are a lot of factors to weigh when determining whether an economy is experiencing inflation or deflation. For example, we touched on the productivity of an economy. A highly developed economy using computers is quite economically productive versus a village in a rural part of the world without advanced technology.

The demographics of the population over long periods matter, too. An aging population means fewer productive workers, whereas a young and growing population has a lot of future workers and pent-up demand. Part of the reason for massive price inflation over the past 70 years is the baby boomer generation. The population exploded, came of age, and became productive workers, while simultaneously creating a lot of demand.

The availability of credit also plays a part in the inflation-versus-deflation story. The cycles of inflation and deflation tend to be guided by banks’ willingness to lend money. There comes a point in time where society has over-consumed and the economy has overproduced. At that point, the ability to pay back loans comes under pressure, and banks pull back the amount of credit they offer. As credit contracts, so do the economy, leading to a deflation of prices.

The Inflation of Bitcoin Supply and Protocol

Earlier, we mentioned that anything can be inflated, from money in an economy to bicycle tires. Bitcoin was created to be a currency and store of value, and its inflation rate is preprogrammed into its code.

As you may know, Bitcoin is the fuel to maintain and secure the Bitcoin blockchain. Approximately every 10 minutes, new transactions are confirmed to the next block of the Bitcoin chain. The miners who confirm those blocks receive newly created Bitcoin as their reward for doing the work. Therefore, every 10 minutes, a new Bitcoin is getting added to the economy and is available to spend.

To limit and cap the number of bitcoins that will ever be created, Satoshi Nakamoto programmed a halving cycle into the code. Approximately every four years, the reward a miner receives is cut in half. New Bitcoin continues to be created but at a slowing rate.

On the chart above, the slope of the curve is decreasing, signaling a corresponding decrease in the amount of new Bitcoin being created each year. The next halving cycle is expected to take place around 2024, and the rate of new Bitcoin will slow even more at that time.

Eventually, the reward will become less than 1 Satoshi and no more Bitcoins will be created. At that point, there will be 21 million bitcoins available. However, that won’t happen for several generations, as it’s expected to take place around the year 2140.  

One of the biggest reasons people have been investing in Bitcoin is the scarcity of supply. There is a limit to the number of bitcoins that will ever be available, and the inflation rate can mathematically be figured out at any time.

What Happens to BTC Prices During Money Inflation?

Now that we know the supply of Bitcoin is fixed, the other primary factors that will affect its price will be the demand for Bitcoin and the supply of money in the economy. 

The demand for Bitcoin will rise and fall based on many different factors. It can be argued that Bitcoin is still in the early adoption stage of new technology. A recent survey found that 

, which cannot be considered mass adoption by any stretch. As a result, it can be argued that generally speaking, demand is likely to rise for Bitcoin, which may tug prices higher.

Let’s put demand to the side for a moment, assuming that it will remain constant or grow slightly. How might the inflation or deflation of fiat money in the world’s economies affect the price of Bitcoin?

The main developed economies in the world are increasing their money supply. When we have a worldwide economy with more money in it and a fixed number of bitcoins, the cost of Bitcoin priced in the fiat currency will rise.

The above chart represents the size of the Federal Reserve’s assets. The Fed is the central bank for the United States, and the size of its assets is a broad gauge for estimating how much money they are authorizing to be printed.

Before 2007, the Fed’s assets totaled nearly $1 trillion. In 2021, this number has ballooned to over $8 trillion. Therefore, it’s no surprise that the price of Bitcoin has been trending higher, as more money is being printed by developed economies.

What Happens to BTC Prices During Monetary Deflation?

On the other hand, there are times when money is destroyed or credit collapses, which creates a deflationary environment. Generally speaking, when the forces of deflation take over, we typically see the price of Bitcoin collapse as well.

The above chart shows the price of Bitcoin during the COVID-19 pandemic. When people are forced into their homes, they spend less in general, yet businesses have inventory and expenses to pay. As a result, during the pandemic businesses have fired workers, and revenues have collapsed.

The price of Bitcoin collapsed during this time as well. Some people may need the value of Bitcoin converted to their local fiat currency. For others, the price collapse could have been expected, as the pandemic began dragging prices lower with no end in sight.

The important point to remember is that the price of Bitcoin generally follows money creation. If the supply of money is increasing substantially, then the price of Bitcoin likely will rise. If the supply of money is decreasing, then the price of Bitcoin likely will fall. These trends don’t correspond directly, however, and are to be looked at in general terms, because the demand for Bitcoin also has an impact on prices.

Inflation vs. Deflation: Where Are We Now?

In response to the COVID-19 pandemic, central banks around the globe have been printing a lot of money. 

— red circle indicates when the COVID-19 pandemic hit the United States

As an example, the Federal Reserve has printed nearly 4 trillion dollars between March 2020 and July 2021. This is an astounding 100% increase in the money available in the U.S. economy.

Since the introduction of vaccines, businesses have reopened and commerce is returning in many areas. However, the effects of the pandemic are still being felt in high unemployment rates. In the chart above, the U.S. unemployment rate has fallen but is still above levels just before the pandemic started. 

One way to measure the effect of inflation or deflation is to review the consumer price index (CPI). 

The CPI involves complex calculations to determine if the costs of certain goods and services are increasing. When the CPI is rising, it suggests inflation’s effects are being felt in the economy. With better employment and increasing amounts of money printing, the CPI reading has been accelerating higher of late. As a result, the current inflationary environment should be supportive of Bitcoin prices.

If there comes a time when the central banks begin to hold levels of money printing or shrink the amount of the money supply, then it’s possible Bitcoin’s price may correct lower.

Can Bitcoin Be an Effective Hedge Against Inflation?

Fiat currency inflation occurs when the amount of money in the economic system grows significantly, causing the price of goods and services to rise. Therefore, citizens will want to invest in tools that can store the purchasing power of their wealth and act as a hedge against inflation. This could be investing in another economy, or in companies that tend to perform well in high inflation environments.

However, if your investments or inflation hedges aren’t keeping up with the rate of inflation, you’ll end up losing purchasing power and seeing your wealth evaporate. Since Bitcoin has a fixed amount of supply that can never be increased, it’s believed to be a store of value that can preserve the purchasing power of fiat money.

 In the image above, you can see that when the amount of money expands (blue line moves higher), Bitcoin tends to perform well and move higher as well (orange line). However, when the blue line moves lower, then deflation is at hand and Bitcoin tends to underperform.

Should You HODL Your Bitcoin or Spend It?

There’s an interesting cycle going on currently that positively impacts Bitcoin’s price. First, when the economy experiences a slowdown, central bankers and politicians are quick to provide stimulus. That stimulus is the result of extra money being printed, which stokes inflation. As inflation increases, central bankers consider cutting back on stimulus — which causes deflation of the money supply. Then, the economy begins to falter and more stimulus is queued up.

Bitcoin has reacted positively to a sequence of such events, and thus, it has a lagging benefit to deflation, too. The standard response is that deflation leads to a stimulus … which leads to inflation … which leads to higher Bitcoin pricing. Therefore, if you have the nerve to withstand the wait, HODLing is a reasonable investment strategy for picking up more Bitcoin at cheaper levels. 

Central banks closely follow the rate of inflation within their economy. A healthy economy is going to experience a small amount of inflation. If the inflation rate turns negative, then the economy experiences deflation, which can devastate efforts to restart the economy.

Since the COVID-19 pandemic began, the Federal Reserve has printed 4 trillion dollars of fiat money that has driven inflation rates higher. As a result, the price of Bitcoin has generally risen as people look to it as a store of value.

If central banks were to slow their money printing or otherwise decrease the amount of money in the economy, then the price of Bitcoin might fall in response to the tighter money supply.

Inflation vs. Deflation: The Effects on Bitcoin’s Prices

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