KEY TAKEAWAYS
- Bybit’s latest report with Block Scholes indicates a slow recovery in crypto market sentiment after a recent downturn.
- Altcoin perpetual funding rates underperformed, while Bitcoin and Ethereum remained stable with positive funding rates.
- Options market shows reduced volatility and a normalization of term structure, reflecting moderated downside expectations.
- Macroeconomic factors, including potential Federal Reserve rate cuts, contribute to improved market tone despite low trading volumes.
Bybit, the world’s second-largest cryptocurrency exchange by trading volume, has released its latest Bybit x Block Scholes Crypto Derivatives Analytics Report. The report, created in collaboration with Block Scholes, analyzes recent movements in major digital asset markets and highlights signs of a slow but steady recovery in market sentiment following a recent sell-off.
Perpetuals and Altcoin Performance
The report notes that altcoin perpetual funding rates underperformed during the deepest point of the downturn. This reflects a strong demand for short exposure as traders anticipated further declines. In contrast, Bitcoin (BTC) and Ethereum (ETH) perpetual markets remained relatively stable, with both assets recording consistently positive funding rates throughout the period.
As market conditions improved, several large-cap altcoins, including Solana (SOL), Toncoin (TON), Curve DAO Token (CRV), and Cardano (ADA), posted positive funding rates. This was in line with a slight rebound in spot prices and reduced pressure on short positions.
Options Market Insights
The report also highlights changes in the options market. Short-tenor implied volatility has declined from last week’s extreme levels, leading to a normalization of the term structure and a reduction in the elevated premium placed on near-term downside protection. The easing of put skew indicates that expectations for immediate further downside have moderated, although a preference for hedging remains.
Options data reflects broader stabilization led by Bitcoin, which now trades above 91,000 USDT after revisiting prices last seen in April 2025. This stabilization is supported by an improvement in global risk appetite, with BTC and ETH now trading above 91,000 USDT and 3,000 USDT, respectively. Several altcoins have shown similar signs of stabilization, although overall participation remains subdued.
Macroeconomic Context and Market Outlook
The macroeconomic backdrop has provided additional clarity, with a series of U.S. economic data releases following the end of the government shutdown. These releases have improved visibility ahead of the Federal Reserve’s December 10 policy meeting. Remarks from Federal Reserve official John Williams suggested that a further 25-basis-point rate cut may be possible at the upcoming FOMC meeting, with market-implied odds rising above 80 percent.
This shift, alongside gains in traditional risk assets such as the S&P 500, has helped reinforce the improvement in crypto market tone. Despite the gradual lift in sentiment, open interest and volumes across instruments remain relatively low, indicating that traders remain cautious.
The full analysis is available in the Bybit x Block Scholes Crypto Derivatives Analytics Report.
Why This Matters: Impact, Industry Trends & Expert Insights
Bybit’s latest report, in collaboration with Block Scholes, indicates a gradual improvement in crypto market sentiment, signaling a potential recovery following a recent downturn.
Recent industry reports indicate that the crypto market experienced a sharp downturn in November 2025, with Bitcoin dropping significantly from its October peak. This aligns with the report’s findings of a slow but steady recovery in market sentiment as traders adapt to improved macroeconomic conditions.
A report by Economic Times highlights that major cryptocurrencies like Bitcoin and Ethereum have shown signs of stabilization, supported by improved global risk appetite. This supports the report’s observation of a normalization in market conditions and a reduction in downside protection premiums.
Explore More News:
Disclaimer: The views expressed in this article are those of the authors and do not necessarily reflect the official policy of CoinsHolder. Content, including that generated with the help of AI, is for informational purposes only and is not intended as legal, financial, or professional advice. Readers should do their research before taking any actions related to the company and carry full responsibility for their decisions.
