Bitcoin has surged to its highest level in two months, triggering a shift in crypto derivatives market sentiment, according to a new report by Bybit and Block Scholes.
Key Takeaways
- Bitcoin’s rally to nearly $96,000 has driven increased open interest in perpetual futures and improved sentiment across derivatives markets.
- Short-dated options for Bitcoin and Ether have moved toward a more neutral volatility skew after months of bearish pressure.
- Altcoin funding rates are rising, reflecting a broader return of risk appetite among crypto traders.
- The Bybit x Block Scholes report points to consistent risk pricing and market recalibration rather than panic-driven volatility.
What Happened?
Bitcoin’s price broke out of a tight trading range and climbed toward the $96,000 mark, its highest point in two months. This breakout has rippled across futures and options markets, prompting a notable change in sentiment according to Bybit and Block Scholes’ latest Crypto Derivatives Analytics report.
Bitcoin Rally Ignites Derivatives Market Shift
The Bybit x Block Scholes report shows that Bitcoin’s recent surge has coincided with a rise in perpetual futures open interest, signaling new long positions by traders. This behavior suggests increasing confidence in continued upward momentum.
- Open interest has expanded across major digital assets, not just Bitcoin, indicating broad-based optimism.
- Altcoin funding rates have also climbed, showing a greater appetite for risk among derivatives traders.
Meanwhile, options markets are showing signs of recalibration. For short-dated Bitcoin and Ether contracts, volatility skews have moved back toward neutral territory. Previously, these options showed a strong bearish bias with elevated put premiums.
Despite the sharp move in Bitcoin’s spot price, implied volatility remains relatively calm, suggesting the market does not foresee extreme short-term turbulence. Instead, investors appear to be adjusting expectations based on new market dynamics rather than reacting with fear.
Technical Zones and ETF Support Add Fuel
Analysts highlight the $94,000 to $96,000 range as a critical area for sentiment shifts in the derivatives space. A similar move earlier this month temporarily pushed options skews to neutral, but sentiment reversed when the rally failed to sustain.
This time, however, there are signs the breakout may have stronger legs:
- Spot market flows into Bitcoin and Ether ETFs remain positive year-to-date, supporting the rally from a demand perspective.
- Roughly 30 percent of Ether’s supply is now staked, reducing available liquidity and strengthening price dynamics.
Han Tan, Chief Market Analyst at Bybit Learn, commented on the broader market outlook. He said:
CoinLaw’s Takeaway
I found this report from Bybit and Block Scholes particularly insightful because it connects the dots between price movement and structural market shifts. In my experience, a move in options skew from bearish to neutral is not something traders should ignore. It tells me that sentiment is maturing and the market is stabilizing after weeks of caution.
The fact that this shift is happening without a spike in implied volatility makes the move even more compelling. For those tracking Bitcoin’s path to $150,000, this could be one of the early signs that institutions and larger players are re-entering the game.
