DUBAI, UAE, Jan. 24, 2025 /PRNewswire/ -- Bybit, the world's second-largest cryptocurrency exchange by trading volume, released the latest weekly crypto derivatives report in collaboration with Block Scholes, recognizing crypto markets' subdued bullish sentiment in an almost anti-climatic turn of events after Trump's inauguration.
The 2025 presidential inauguration triggered a wild weekend of speculation with Trump family meme coins TRUMP and MELANIA, tilting derivative markets toward a bullish shift. However, the anticipated BTC-related executive orders failed to materialize, causing implied volatility to drop although realized volatility rose. Perpetual and options markets maintained high funding rates and a persistent bullish tilt, reflecting the complex speculative environment as crypto's sunny expectations met political uncertainty.
Key Insights:
SOL's Spotlight Moment: Trump's issuance of "husband and wife" coins sparked an all-time high in Solana perpetual swaps, driven by traders anticipating crypto-friendly policies. The TRUMP meme coin's launch on Solana DEXs elevated the network's fee generation, symbolically positioning it above Ethereum competitors.
Derivatives Market Resilience: Perpetual swap funding rates remained neutral-to-bullish despite minimal crypto-positive inauguration announcements, with open interest showing stable positions. Derivatives markets viewed the event as just one of many potential catalyst opportunities.
BTC Options Speculation: Earlier anticipation of a potential strategic BTC reserve triggered significant short-tenor options positioning, resulting in robust call buying and the strongest at-the-money term structure inversion since the November 2024 election. While front-end volatility pricing has moderated, the strong skew toward out-of-the-money calls persists.
Access the full report, including detailed analysis of volatility trends, funding rates, and options market dynamics.
Bybit / TheCryptoArk /BybitResearch
About Bybit
Bybit is the world's second-largest cryptocurrency exchange by trading volume, serving a global community of over 60 million users. Founded in 2018, Bybit is redefining openness in the decentralized world by creating a simpler, open and equal ecosystem for everyone. With a strong focus on Web3, Bybit partners strategically with leading blockchain protocols to provide robust infrastructure and drive on-chain innovation. Renowned for its secure custody, diverse marketplaces, intuitive user experience, and advanced blockchain tools, Bybit bridges the gap between TradFi and DeFi, empowering builders, creators, and enthusiasts to unlock the full potential of Web3. Discover the future of decentralized finance at Bybit.com.
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