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

Crypto

Investing

Trading

Hedging is an essential strategy to manage the risk of trading in a volatile market. Learn Bybit explores ways of hedging in the crypto world.

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It’s no secret that crypto trading can be a risky investment. Market downturns are inevitable. As a trader, you need to find ways to protect your investment from risk, and this is where crypto hedging strategies come in. Hedging encompasses opening positions in opposing market directions to reduce the risks and impacts of market swings.

But what is a hedging strategy? What are cryptocurrency risks? How to apply risk hedging strategies to crypto? Is hedging 100% risk-free? If these questions seem perplexing, you’ve come to the right place. This article will explore everything you need to know about hedging. In addition, we’ll show you four crypto hedging strategies you can easily apply.

In fact, the introduction of crypto hedging has

, a hedge is an investment that is made to reduce the risk of adverse price movements in an asset. Hedging strategies enable traders to use more than one concurrent bet in opposite directions to minimize the risk of drastic losses.

Hedging has long been a financial market strategy as a form of risk management technique for crypto traders. It allows you to maintain a stable value for your investments (without making a considerable return) in undesirable market conditions.

While hedging crypto protects your assets from adverse market changes, it also limits the potential gains you get from your crypto investment. However, for risk-averse crypto traders, this is a better option than losing all their assets due to an adverse price fluctuation in the cryptocurrency market.

Much like the forex market, the cryptocurrency market possesses similar forms of risks: volatility risks, regulatory risks, transactional risks, and leverage risks.

Cryptocurrency risks (just like most financial instruments) generally emanate from the volatile nature of these currencies. Trading in crypto is mainly speculative. Therefore, you must understand these risks before you start trading.

Since cryptocurrencies are highly volatile, sharp and sudden price movements often occur as market sentiments change. It is common for the value of cryptocurrencies to quickly swing, by hundreds or even thousands of dollars at a time.

 increased by more than 800% in 24 hours and the price dropped by more than 500% the next day.

Neither governments nor central banks regulate cryptocurrencies. While governments and financial institutions are starting to take note, there’s still uncertainty about issues such as whether to classify them as a commodity or a virtual currency.

The lack of regulations limits the protection of sellers and buyers, leaving investors to rely on developments, individuals, and personal experience when making investment decisions.

Errors in communications and delay in transacting the traders’ orders may result in huge losses for crypto traders. Therefore, it is vital to choose an exchange that can handle a large volume of 

 (TPS). For instance, Bybit is leading the crypto industry by processing up to 100,000 TPS/ It also provides methods of recourse for crypto traders.

With low margin deposits and collateral, traders can enjoy a high degree of leverage. Traders need to be cautious about using aggressive leverage that can increase losses during unfavorable conditions.

Now that we have covered the downside risks of cryptocurrency, let’s dive into hedging cryptocurrency risks.

If you are overly worried about the risk to your position, closing it entirely or reducing its size is a safer option. But hedging can be a helpful strategy if you want to maintain your crypto holding and create a neutral exposure. Here are some of the principles you should bear in mind before applying hedging strategies:

You can deploy crypto hedging strategies in a variety of ways. Here are the four most popular methods.

Short selling means taking a position to sell an asset when the trader believes that an investment will fall in value. You as a trader can look forward to making a profit by buying back at a lower price — or profiting from the difference. Short selling in cryptocurrencies protects against long exposure.

 allows investors to hedge against the downside risk of a long position in the same security, or a related one.

Shorting typically adds complexity to crypto. Therefore, be careful with this tactic, whether you are shorting crypto for hedging or speculation. You can short cryptocurrencies in different ways, including:

The potential for loss is infinite when short selling. You can long for a cryptocurrency that may swing to the price of $0, resulting in a complete loss. So in order to avoid disastrous losses, a trader will set a stop-loss limit at his initial investment.

In finance, the term futures refer to an agreement to sell or buy an asset on a specific future date at a certain price. As it has a secondary market of its own, the futures can be sold before the agreed upon date. This increases liquidity of investors and business owners. Futures contracts are part of a large category trading instruments known as 

Contracts for Difference (CFDs), Options,

Cryptocurrency futures operate under a similar concept. Due to the volatility of cryptocurrencies, most traders buy when the prices are low and sell when the prices are high. However, such selling and buying can cause investors to miss potential profits.

Cryptocurrency futures allow you to leave your position open, thus maximizing the profits to be gained from your crypto investments. Today, CME provides several Bitcoin futures with different expiration dates, for example in its 

. All contracts are settled in U.S. dollars at the date of expiration.

 hedge your investments or lock your profits in a volatile market such as cryptocurrency. They are ideal for investors who want to hedge their exposure in the crypto market for a reasonable period.

The risks of hedging through futures include leverage risks, as discussed above. However, leverage risks remain one of the popular options for crypto hedging.

Perpetual swaps are derivatives that allow you to buy or sell the value of an underlying asset without setting an expiration date for the position you take (you can choose when to take or exit a position at any time).

Perpetual swaps offer you more buying power than you would have when spot trading. Thus, they place you in a better position to take advantage of price fluctuations. Perpetual swaps operate under a funding rate mechanism in which you pay a fee or rebate to continue holding your position.

Before using perpetual swaps as a hedging strategy, you need to determine your collateral’s funding rate mechanism and potential returns. You also need to understand the leverage the exchange you choose allows (derivatives can allow up to 100x leverage).

This strategy has quickly gained notoriety in the crypto market. It enables traders to leverage on positions without an expiration date. The key difference is that a perpetual swap is traded close to the index price of the underlying asset.

The perpetual swap also charges funding rates. This incentivizes traders to buy perpetual swaps when the index price is bullish. The funding rates are usually designed to ensure price stability.

Since they do not rely on an expiration date, perpetual contracts quickly took off on BitMEX. They are soon to be adopted by major crypto exchanges, including Bybit and Binance.

Perpetual swaps as a hedging strategy have its advantag

However, due to the fluctuations in the funding rate, a perpetual swap can make the hedging cost unpredictable. The losses from high leverage rates could be greater as well.

Options are another type of derivative in crypto. They allow investors the right — but not the obligation — to buy or sell an underlying asset at a specific price, or before a certain date. You can use options as a way to hedge cryptocurrency by limiting downward losses in a declining market.

Put options increase in value when the underlying asset declines below the exercise price of the option, while call options will decrease. This results in a significant level of leveraged hedge protection at a relatively lower cost.

You can also use options for speculation on the direction of a cryptocurrency. Options come as call options or put options. A call option gives you the right to buy a stock, while a put option allows you the right to sell a stock.

Advantages of hedging cryptocurrency risks with options include:

The major downside to using options is the expiration date. Long-term options can be pricey, while a short-term option may result in options expiring before they can provide you with the desired hedging protection.

Hedging is not 100% risk-free. While investors use hedging to protect themselves from fluctuations in the market, hedging also comes with its risks. It does not guarantee the success of your investment. Neither does it ensure that your investments mitigate the risks.

When choosing a crypto hedging strategy, the best approach is to consider the advantages and disadvantages of hedging a particular crypto asset. You should also determine whether the benefits of the hedging strategy you choose outweigh the expense that comes with the hedge.

In some cases, hedging can be counterproductive, especially when the market remains neutral (you still have to pay the hedging costs).

Cryptocurrencies are indeed volatile financial instruments that come with certain risks for investors. Crypto traders should be aware of financial strategies, such as hedging, that minimize potential loss and protect their position, regardless of the market conditions.

Hedging protects you from huge losses that could be experienced in the highly volatile cryptocurrency market. Another reason why hedging crypto is essential is that it protects your profits in the event of a crash or price correction.

4 Hedging Strategies for Cryptocurrency Risks

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