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: 

. Each successively higher tier offers greater rewards, and also comes with more stringent qualification requirements. For instance, as a 

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However, this doesn't mean your account will immediately lose its VIP status and revert to standard after a single day in which you don’t meet the requirements. Bybit offers a 14-day grace during which you can continue enjoying VIP perks and benefits, even if you no longer meet the program's conditions. If the criteria are not met by the end of this period, your VIP status will automatically be revoked. However, if that occurs, you can regain your status by fulfilling the requirements for any VIP tier either during or after the grace period. When this happens, Bybit will grant you a new 14-day grace period.

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 

 and fill out the form with your details. After registering, you’ll need to verify your account to enjoy the platform's full functionality.

Next, fund your Bybit account with crypto or fiat currency.

You can deposit cryptocurrencies by using the 

 menu. On the page, choose your desired coin and the blockchain where you'll be depositing the assets. To avoid any loss of funds, please always ensure that you're transferring crypto from the correct chain.

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 service, choose a fiat currency, the deposit amount and one of the available payment methods. After clicking on 

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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.

How to Get Started With a 20-Day Bybit VIP Trial

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.

To unlock the 20-day VIP trial, head to the 

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Exclusive Trading Benefits Offered to Bybit VIPs

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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

Indicators

Trading

The directional movement index (DMI) is a widely used technical indicator in financial markets for assessing trend direction and strength. 

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The directional movement index (DMI) is a widely used technical indicator in financial markets for assessing trend direction and strength. Developed by J. Welles Wilder Jr., it consists of three indicators: the positive directional indicator (+DI), the negative directional indicator (−DI) and the 

In this article, we’ll look at what the DMI is, what it tells you, and how to use it for trending and range-bound markets.

What Is the Directional Movement Index (DMI)?

The directional movement index (DMI) is a technical indicator widely used by traders in financial markets to assess whether upward pressure or downward pressure on price is more dominant.

 Developed by J. Welles Wilder Jr., the DMI also helps traders identify whether an asset is in a strong trend or a sideways consolidation phase.

The positive directional movement line (+DI) and negative directional movement line (−DI) are integral parts of the DMI. These indicators are used to gauge the strength of bullish and bearish trends, respectively.

The +DI measures the strength of an upward price trend, indicating the presence of bulls in the market. It calculates the difference between the current high and the previous high, but only if it’s positive. The resulting values are then smoothed over a specific period. The +DI can range from 0 to 100, with higher values suggesting a stronger bullish trend.

On the other hand, the −DI measures the strength of a downward price trend, signaling the presence of bears in the market. It follows a similar calculation as the +DI, but focuses on the difference between the current low and the previous low. Like the +DI, the −DI is also evened out over a particular period. Values range from 0 to 100, with higher values indicating a stronger bearish trend.

Conversely, if the −DI is higher than the +DI, it indicates that the bears are dominating the market, suggesting the potential for more downward pressure in price, and traders may choose to go 

The average directional index (ADX) is the optional third line of the directional movement indicator. It quantifies the trend's strength as identified by the +DI and −DI. Unlike the directional indicators, the ADX doesn’t differentiate between bullish or bearish trends, instead focusing on the overall strength of the trend, regardless of direction.

The ADX is calculated by averaging or smoothing the difference between the +DI and −DI values over a specified period. The resulting values range from 0 to 100, with higher readings indicating a stronger trend. Traders often use a threshold, such as 20, to determine whether a trend is significant enough to warrant their attention.

How to Calculate Directional Movement Index

The formula for the DMI appears intimidating. Fortunately, charting packages will automatically calculate this for you and apply it to a separate window at the bottom of your chart.

Calculating the DMI involves a series of steps that take into account the positive directional indicator (+DI), the negative directional indicator (−DI) and the average directional index (ADX). Here's a breakdown of the calculation process:

n = Number of periods (a common value is 14)

Step 1: Calculate the true range by finding the maximum absolute value of the following three values:

Step 2: With the true range in hand, compute the ATR using the formula: 

ATR = [(Previous ATR * (n − 1)) + True Range] / n periods.

Determine the Directional Movement (DM) for each period

Smooth the +DM and −DM values over a specified period (n):

 to smooth the +DM and −DM values individually over the chosen period.

 Divide the smoothed +DM and −DM values by the smoothed ATR values, and multiply by 100 to get the percentage values for +DI and −DI.

 Smooth the absolute value of the difference between the +DI and −DI over a specified period to obtain the ADX.

The DMI is a comprehensive indicator that reveals insights into market trends and their strength. Following are some key insights that the DMI indicator offers.

: DMI helps identify whether an asset is trending or in a sideways consolidation phase. By analyzing the +DI and −DI, traders can determine the prevailing trend. If +DI is above −DI, it suggests a potential uptrend, while the opposite indicates a possible downtrend.

: The DMI's ADX quantifies the strength of a trend, regardless of its direction. A rising ADX indicates a strong trend, while a declining ADX suggests a weakening trend or a period of consolidation. Traders can use ADX to assess the significance of a trend and make informed trading decisions.

: The DMI can help traders identify potential entry and exit points. During an uptrend, traders may consider entering long positions when the +DI crosses above −DI. Conversely, during a downtrend, a crossing of +DI below −DI may indicate a chance to enter short positions. Traders may also look for ADX readings above a certain threshold (e.g., 20) to confirm a trend's strength before making trading decisions.

The DMI indicator has a trend strength gauge and directional filter built into it. Follow the guidelines below when trading a trend:

First, determine if there’s a strong trend. Look for the ADX line to be rising and near 20.

Next, determine if the +DI or −DI lines are turning higher. The line that turns higher and crosses above the other determines your trend direction.

In this situation, you can use other technical tools to pinpoint the trade entry or place a buy breakout to position long, as Bitcoin is expected to rally. Indeed, Bitcoin experienced a significant rally by about 35% over the following month. 

A range is essentially a non-trend. Therefore, if the ADX is declining, it signals the trend is losing momentum, and the conditions for a range or reversal to develop are increasing.

Once the conditions exist for a range to develop, you can identify 

, and then look to buy at support and sell at resistance.

Additionally, a trader could consider an options strategy that capitalizes on sideways non-volatile pricing, such as a short strangle,

For the next month, Bitcoin prices did indeed consolidate between $18,600 and $20,400. A trader at that time would look to buy at support and sell at resistance.

Pros and Cons of the Directional Movement Index

The DMI offers several advantages for traders. First, it aids in identifying trends and providing valuable information for trend-following strategies. 

Additionally, the ADX component quantifies trend strength, helping traders gauge the significance of a trend. Furthermore, +DI and −DI crossovers serve as potential entry and exit signals, assisting traders in timing their trades effectively. 

However, there are some limitations to consider. The DMI is a lagging indicator, meaning it may generate delayed signals during periods of high market volatility after the market has already started trending. 

In addition, it can produce false signals, particularly in choppy or range-bound markets. If you suspect a range-bound market is developing, consider incorporating other technical analysis tools for timing entries.

Reflecting on these pros and cons, traders can make informed decisions when incorporating the DMI into their trading strategies.

In conclusion, the directional movement index (DMI) is a valuable technical indicator that traders use to assess price movement trends. Even though the DMI can help traders make well-timed trading decisions, they need to be mindful of the lagging nature of the DMI and the potential for false signals.

Directional Movement Index: How to Use the DMI Indicator

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