Report: Crypto derivatives market remains stable amid recent volatility, indicating growing trader confidence

Odaily News A joint report by Block Scholes and Bybit said that during the recent sharp sell-off when BTC fell below $59,000, open interest in the futures contract market remained stable, indicating that traders reduced leveraged positions, thereby limiting the risk of forced liquidation. The report noted that this pattern remained consistent throughout the year, reflecting the cautious approach taken by market participants during periods of increased volatility. In addition, the report highlighted the positive changes in TON funding rates after major market events, further indicating a renewed interest in leveraged positions. The report also revealed the market's views on the upcoming US presidential election. According to the analysis, the volatility term structure shows that there is a strong bullish sentiment on cash call options that expire after the election. This suggests that traders expect a favorable environment for crypto assets after the election. In addition, the report observed that the demand for downside protection in short-term expiration continued, reflecting the cautious optimism of the market. The findings of Block Scholes and Bybit show that a mature crypto derivatives market is able to adapt quickly to changing dynamics. Even during major events, the market has remained stable, indicating that traders' confidence is growing. (Bitcoin.com)