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Our weekly crypto derivatives analytics report delves into macro events; the current state of crypto and trading signals from spot trading volume; and futures, options and perpetual contracts.
The latest Middle East conflict has had an impact on trading volumes for perpetual swap contracts, and has driven funding rates negative for several tokens. Market-wide de-risking — due to fears of an escalating Iran-Israel conflict — has led to significant declines in crypto assets, with Bitcoin (BTC) down over 4%, Ethereum (ETH) over 8%, and Solana (SOL) by 10%. However, ETH options markets are displaying a less bearish sentiment toward out-of-the-money (OTM) puts as compared to BTC's short-term options, with a positive put-call skew for expirations beyond 30 days. Meanwhile, open interest in perpetuals has decreased from June highs but remains stable above $9 billion, while short-tenor implied volatility for BTC options is nearly half of that for ETH options. Additionally, 7-day realized volatility stands at 30% for BTC and 70% for ETH.
Please check out the report’s highlights.