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.

With the Bybit VIP Program, you can realize exclusive benefits — from up to 50% off trading fees and tailored interest rates to instant OTC trades, Bybit Card cashback and more. Joining the ranks of the very best traders on the platform will boost your profitability, raise your limits and offer access to VIP-only perks.

 and guides you through the steps to become a VIP trader and unlock exclusive benefits. Let's get started!

 is an exclusive club for the most esteemed traders in the crypto market. It’s designed to provide members an enhanced Bybit experience with numerous VIP-only benefits and perks. The program aims to reward avid traders who have high volumes, account equity levels and borrowing activities.

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 

 trader, you’ll enjoy reduced trading fees, such as 0.03% for makers and 0.045% for takers in the spot market. To qualify for this exclusive tier, you must meet at least one of the following criteria:

Once you become a VIP trader, you must continuously meet the above criteria to maintain your Bybit VIP status and keep enjoying the benefits. 

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.

Next, copy-and-paste the wallet address displayed on the page, or scan the QR code with your smartphone's camera, and initiate the deposit from your wallet. After a few confirmations, your cryptocurrencies will be credited to your Bybit account.

To fund your Bybit account with fiat currency, click on the 

 button and select one of the available services (e.g., 

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

, follow the instructions displayed on the next pages to initiate the transaction. Your funds will be credited to your Bybit account, with processing times varying according to your chosen service and payment method.

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 

 that Bybit only considers 10% of any MT5 forex trading volume.)

 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 

 menu on Bybit and use one of the available payment methods to fund your account with $50,000 in assets.

With VIP Level-Up Tasks, you can earn generous bonuses as high as 6,000 USDT. You can claim rewards for Level-Up Tasks for five VIP levels (VIP 1, VIP 2, VIP 3, VIP 4 and VIP 5), with higher tiers offering greater bonuses upon completion.

If you're eligible, you’ll see a pop-up window with VIP Level-Up Tasks after you log into your account. To claim your rewards, complete the specified trading volume requirement within 14 days of receiving the task, and click on the 

 page. You can learn more about Bybit VIP Level-Up Tasks

Exclusive Trading Benefits Offered to Bybit VIPs

As a member of the Bybit VIP Program, you can unlock exclusive benefits to supercharge your trading experience. Among these are discounted trading fees (which can significantly boost your trading revenue), profitability and chances of winning trades.

In addition to discounted trading fees, you’ll also enjoy substantially higher API trading and withdrawal limits. While the former is restricted to 10 trades per second for non-VIP users, you can take advantage of up to 120 API trades per second as a VIP trader. Simultaneously, your daily withdrawal limit is increased from the basic 1 million USDT to as high as 12 million USDT.

 is an exclusive club that provides an enhanced service experience for the most esteemed traders. As a member, you can access a multitude of exclusive benefits and perks, such as the following:

Are you ready to supercharge your trading experience? 

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

Investing

Trading

Indicators

The risk-reward ratio help defines the difference of entry points, stop loss and take profit to minimize risks. Learn how to hedge against risks & maximize your potential reward.

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A good trading strategy is often not enough to bring consistent profits from crypto trading. Profitable traders usually have certain methodologies they use to achieve their ultimate financial goals.

Most traders spend their time studying price charts, reviewing historical data and looking for the next big opportunity. While these are constructive activities that everyone needs to attend to, not every trader takes the time to focus on the potential loss or profit relative to the risk taken.

Being able to recognize a good risk-to-reward ratio can help you plan a proper 

 and determine whether you’re going to be successful in the long run and achieve your financial goals — or simply get lucky in the short term.

Whether you’re a beginner or an experienced trader, this guide will introduce you to the fundamentals of the risk/reward ratio, including its use, calculation method and risk management, in order to minimize your losses.

The risk/reward (RR) ratio defines the relationship between the potential losses and gains for any given trade. It’s determined by the difference in entry price from the stop-loss and take-profit price. In every trading strategy, the ideal approach is to obtain maximum reward against minimum risk.

Traders can identify risk by finding the price difference between the entry order and the stop-loss order. On the other hand, profit targets indicate a price level where a trader can exit the market with a considerable gain. Traders can identify the reward by measuring the distance between the entry point and the profit target.

A stop-loss trading order automatically sells your cryptocurrency once the price reaches the 

. If this occurs, the order will automatically close to prevent further loss on the trading account, should the price drop even lower.

The difference in percentage between the stop-loss and take-profit level helps to identify the RR ratio, and is an effective way to hone your trading strategy. A low RR ratio is also known as asymmetric risk reward, in which the potential gains from an investment are far greater than the possible losses — and the risk is worth taking.

Traders must calculate the risk they’re taking per trade vs. the reward they stand to gain in order to determine the risk/reward ratio. In manual trading, traders analyze and set these levels before opening a position.

Risk is the amount of money a trader may lose as determined by the stop-loss order. In other words, it’s the difference between the stop-loss order and the entry price. Similarly, the reward is the potential profit set by the trader. We can measure it by calculating the distance between the entry point and the profit target.

The risk/reward ratio is the quotient we obtain when dividing the risk by the reward. 

We can calculate it following this simple formula:

If the ratio is less than 1, you’ve taken a lower risk to get higher returns. The three possible outcomes of the calculation are as follows:

Among these three cases, the aim is to keep the risk lower than the reward so that every time the trade hits the stop loss, your loss is minimized. The ultimate goal is to keep the risk as low as possible in every trade in order to maximize potential profit.

Below is an example of a trade with a desirable risk/reward ratio:

In the above image we see the stop loss, take profit and entry point. Now, let’s plot them in the formula and identify the risk/reward ratio.

Risk/reward ratio = (44,738 − 43,676)/(47,591 − 44,738)

The risk/reward ratio here would be 1:2.68, which is less than 1.

Finding the trend in the volatile cryptocurrency market can be challenging, regardless of whether you’re using 

. The risk/reward ratio remains one of the most important tools to help critically identify a trade entry point, a stop-loss or a take-profit order. Traders usually identify price direction by using multiple technical and/or fundamental tools. However, even if you follow a good trading strategy, there’s always the possibility of loss, as no one knows the future.

Therefore, crypto’s high volatility and unpredictable market make using the risk/reward ratio compulsory for cryptocurrency trading. As such, using a stop loss in each trade is essential. Moreover, it can help you increase the probability of winning trades. It isn’t wise to risk all of your investment in a single trade, nor does it make sense to risk $1,000 for a $100 gain. Again, most analysts advise a risk/reward ratio of no greater than 1:2, or 0.5, for recommended trades.

In every trading strategy, obtaining higher returns is the primary goal. That’s why a risk/reward ratio of no greater than 1:2, i.e., with a maximum value of 0.5, is recommended. However, there are no fixed rules of use, as it depends on the expectation and the strategy you use.

Let’s have a look at the concept of trading expectancy, or the average profit for each trade placed by an investor, using the following formula:

Finding the expectancy and matching it with the risk/reward ratio is important for day traders and swing traders. For example, if you make ten trades, of which six are profitable, your win rate is 6/10 or 60%.

Now, let’s say that of those ten trades from which you’ve made a profit, you earn $6,000, while losing $2,000 on your four losing trades. In this case, your average win should be $6,000/6 = $1,000, while the four losing trades with $2,000 loss produce an average loss of $2,000/4 = $500.

Therefore, your trading expectancy of 80% is very high.

The risk-to-reward ratio plays a vital role in making trades, although a good R/R ratio still doesn’t ensure profitability. It’s a tool designed to protect against unexpected market movement that could wipe out profit potential. Besides using an appropriate R/R ratio, take other factors into consideration as well:

Overall, it’s recommended that you stick to a set of rules written into your trading checklist in order to obtain the ultimate benefit from the market.

Technical Indicators and R/R Ratio to Maximize Rewards

Clearly, you cannot rely solely on risk/reward ratio when trading. Trading or investing without properly managing position sizing and a good R/R will only maximize your risks. Financial trading requires a systematic approach to increase the potential reward, and there’s no place for guessing the price or gambling.

Here are a few steps to take in order to increase your success and reduce your risk.

Setting a Stop Loss by Defining the Risks

The risk per trade is the difference between the entry point and the stop loss level. The stop-loss level is the exit point where your trade should close automatically in order to minimize loss.

Price action, or the price movement of an asset plotted over time on a chart, defines what buyers and sellers are doing in the market. If you read a price chart carefully, you’ll see that price often respects certain 

 multiple times. If we can set the stop loss from these, the price is more likely to bounce back.

In the above image, we see that Bitcoin moves higher from the strong support of $30,000. Therefore, buying from that level with a risk below $30,000 creates a higher probability of a win.

Another approach is using trend line support or resistance, from which the price often rebounds in a timely fashion.

The above image shows the price bouncing back from the support trend line, with the candlesticks showing the price correcting from the trend line and moving higher. 

Besides static or trend line support, prices are often rejected from dynamic levels. The 

 (EMA) is a great example of dynamic support and resistance level. EMA is a type of moving average that smooths out prices by placing more weight on the most recent price action. For example, if the price approaches the 20-period EMA, there’s a high probability that the moving average will act as a dynamic support or resistance level.

In the above chart, we can see how the price moves higher from the dynamic support. In this regard, it’s safe to place the stop loss below the 20 EMA. Therefore, the price rebounds and moves higher with a risk/reward ratio of approximately 1:4. 

How to Set a Proper Target Profit to Minimize Risks

Before making a trade, it’s recommended you measure the risk and reward. In the above section, we’ve seen how to measure risk using support resistance and moving averages. The same rules apply to measuring rewards. If the price moves higher and reaches any significant resistance level, it has a higher probability of reacting at these price levels. 

Above is an example of how to set the take profit, based on resistance levels. Here, 40,000 works as a significant price reversal point, from which the price moves lower, making the level significant. Therefore, if you’ve bought BTCUSD after the rejection at 30,000, the goal for your take profit should be 40,000.

 is used to identify possible price targets. The primary approach is to consider the 161.8% (1.618) extension level as a major price target. 

How to Use the Risk/Reward (RR) Ratio for Crypto Trading

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards