Phantom Wallet, with 7M monthly users, has integrated the Sui blockchain, marking its first support for a Move-based network and a significant step for Sui’s ecosystem. 

Daily Top Performer — Morpho Protocol (MORPHO)

The S&P 500 fell 0.19% as investors awaited the November jobs report, which may influence the Fed's anticipated rate cut. Coindesk Indices, an index measuring broader cryptocurrency market performance was up by 8.2%, with Bitcoin and Ether rising by 0.17% and 0.40%, respectively in the past 24 hours.

Today's top performer is MORPHO, which surged 54.0% following the launch of DeFi Saver's Automated Leverage Management for Morpho on Base.

Morpho Protocol (MORPHO), founded in 2021, is a decentralized Ethereum-based lending protocol that enhances crypto lending through a P2P order matching system. It allows customizable lending markets and features Morpho Vaults for various risk levels. Initially launched in 2022 with Morpho Optimizers for Aave and Compound, it later introduced Morpho Blue in 2024 for flexible lending markets. Morpho Labs continues to focus on developing Morpho while still supporting the original Morpho Optimizers. 

, enabling Automated Leverage Management. This includes Auto-Repays for unwinding and Auto-Boosts for leveraging up based on set threshold ratios. Users can configure their positions easily. The feature is available for several Morpho markets, such as cbETH/USDC, wstETH/USDC, and more, with additional markets to be added in the future.

Check Out the Latest Prices, Charts, and Data of 

Phantom Wallet, with 7M monthly users, has 

 the Sui blockchain, marking its first support for a Move-based network and a significant step for Sui’s ecosystem. This expands Phantom's multichain support beyond Solana, Bitcoin, and Ethereum, offering Sui users features like staking, swaps, and NFT storage across mobile and browser platforms.

Yesterday, BTC Spot ETF flows recorded a $148.8M outflow from GBTC, partially offset by a $145.0M inflow to non-GBTC funds, resulting in a net outflow of $3.8M.

" hints at a potential $FUEL airdrop happening earlier than expected, despite the Fuel points program running until January 2025. Speculation surrounds whether this refers to the airdrop or another development.

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Phantom Wallet Expands Multichain Support with Sui Integration

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.

BTC has finally surpassed the $100K mark, leading to increased bullish positioning in derivatives markets. This reflects strong sentiment and a desire for upside exposure in perpetual swaps and futures. Short-term implied volatility has risen as traders seek options to capitalize on the rally.

Please check out the report’s highlights.

BTC's successful breach of the $100K barrier has led to a noticeable return of perpetual swap markets to all-time high open interest levels, although the response has been somewhat muted. Earlier in the week, perpetual swap markets shifted their focus to ETH after BTC's repeated failures to break through $100K. While funding rates for both derivatives remained high and positive, open interest in ETH contracts increased at the expense of BTC positions prior to the breakthrough. Additionally, ETH trade volumes have constituted a larger-than-usual market share.

BTC Calls See No Significant Influx Post-$100K

The sudden rise in spot prices has triggered a sharp increase in demand for short-tenor options, as traders seek exposure to the upward movement. BTC's term structure inversion has driven short-tenor implied volatility levels above realized volatility. Although implied volatility for BTC is lower than that of ETH, open interest data shows that the influx of call option open interest in BTC markets wasn’t as significant as for ETH. Nevertheless, BTC's volatility skew remains strongly bullish.

ETH's options market showed the most bullish positioning ahead of the overnight spot move, while the perpetual swap markets for both major cryptocurrencies reflected strong positive sentiment. Open interest is heavily weighted toward OTM calls, signaling a robust preference for upside exposure as realized volatility starts to catch up to implied volatility. This demand for upside exposure is evident for both tokens, particularly with ETH's remarkable increase in call option open interest over the past 24 hours.

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Bybit X Block Scholes Crypto Derivatives Analytics Report (Dec 5, 2024): After BTC Turns $100K, Investors Are Still More Bullish on ETH

The cryptocurrency market is experiencing unprecedented growth, particularly in major assets like XRP, Cardano (ADA) and Stellar (XLM).

The cryptocurrency market is experiencing unprecedented growth, particularly in major assets like XRP, Cardano (ADA) and Stellar (XLM), whose tokens have seen substantial price increases (XRP up 444%, ADA 280% and XLM 512%). This surge is being driven largely by aggressive accumulation from whale investors, as well as cautious but optimistic sentiment in the crypto community. 

Meanwhile, interest in meme coins is declining as investors shift focus to more sustainable projects. The integration of AI in blockchain ecosystems and the emergence of hyperliquid token generation events (TGEs) are also reshaping market dynamics, indicating a transformative phase for cryptocurrencies.

Significant Growth in Major Cryptocurrencies

The report highlights impressive price increases for several major cryptocurrencies:

Despite these gains, general sentiment in the crypto community remains cautiously optimistic.

 activity is a key factor in current crypto market dynamics:

Since mid-October, there’s been considerable accumulation of Bitcoin by whale wallets, which have added a total of 91,856 BTC. This accumulation has played a substantial role in driving up BTC’s price.

In contrast, there’s been a decline in stablecoin holdings among these wallets, suggesting a strategic shift toward investing in cryptocurrencies, rather than choosing to hold stable assets.

The following several emerging trends are reshaping the cryptocurrency landscape.

Overall, our report underscores a transformative period in the cryptocurrency market, characterized by significant asset growth, strategic whale behavior and the integration of advanced technologies.

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Whales Accumulate Bitcoin as It Reached $100K; Emergence of AI Agent

Our monthly option volatility report delves into insights from options volatility to inspire your next crypto move.

Option volatility outlines a compelling narrative for Bitcoin as it approaches the $100K milestone. Leading up to the U.S. election on Nov 5, 2024, Bitcoin's implied volatility experienced a dramatic surge, with short-term implied volatility rising approximately 25 percentage points above post-election expirations. This spike indicated strong bullish positioning in the derivatives market as traders sought to capitalize on anticipated price movements driven by electoral outcomes.

In the immediate aftermath of the election, there was a sharp decline in short-term volatility, aligning with a rally in spot prices that, in turn, led to higher realized volatility. However, the decline in implied volatility didn’t reflect a long-term bearish sentiment — instead, it suggested a temporary easing of uncertainty regarding the election results. The term structure of implied volatility demonstrates a complex relationship: while short-term volatility dipped, longer-dated options remained stable above 50%.

The call/put skew indicates strong demand for bullish call options relative to bearish puts since the election, reflecting heightened upside exposure during BTC and ETH rallies. However, when BTC retraced to $91.3K, the skew shifted 6% toward puts, signaling bearish sentiment. This was inconsistent with futures markets, in which prices remained above spot levels, indicating ongoing bullishness. The skew toward OTM puts arose from increased demand for protective hedges, rather than from a lack of call interest. Ultimately, this suggests traders believe any sell-off would be temporary, supporting the idea that volatility is necessary in order for BTC to reach the $100K mark.

In contrast to Bitcoin, Ethereum (ETH) has emerged as a more consistently bullish asset in recent weeks. While both BTC and ETH exhibited similar volatility patterns immediately following the election, Ether has shown notable resilience and increased momentum, particularly in the wake of Gary Gensler's resignation. This political shift has positively influenced ETH’s market dynamics, resulting in a stronger demand for ETH options.

Ether outperformed Bitcoin during critical market events, including both the election and ETF announcements in 2024. Following Gensler's resignation, ETH gained significant traction, with traders increasingly focusing on Ethereum as a more attractive investment. This shift is evident in the significant drops in the ratio of BTC-to-ETH spot price, indicating that traders are reallocating their preferences toward ETH.

The divergence in implied volatility between BTC and ETH options further underscores this trend, as the ratio of implied volatility for ETH options has surpassed that of BTC, reflecting a stronger demand for ETH optionality. Historically, ETH has exhibited higher volatility compared to Bitcoin. This recent uptick in ETH's implied volatility reestablishes the typical pattern of ETH commanding a premium in the options market.

Moreover, the skew in options pricing has shifted in favor of calls for both BTC and ETH, but ETH's skew has remained more robust. This suggests a stronger bullish sentiment for ETH, as traders are positioning more aggressively for its price appreciation compared to that of Bitcoin. As the market continues to evolve, Ethereum's increasing dominance and the bullish signals from its options market position it as a leading contender in the cryptocurrency landscape, making it likely to outperform Bitcoin in the near future.

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Bybit X Block Scholes Option Volatility Report: November Option Volatility Report: Volatility on the Road to $100K

Bybit Learn

Trading

Learn how to trade inverse futures contracts on Bybit with BTC and ETH as collateral. Discover key features, strategies and benefits of trading inverse crypto futures.

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Futures contracts allow traders to lock in the future price of an asset, enabling potential profit from market movements without direct ownership. Bybit’s inverse futures offer a unique edge: they use Bitcoin (BTC) or Ether (ETH) as both collateral and settlement currencies, providing an opportunity to grow crypto holdings directly, instead of holding 

This article explains the workings of inverse futures contracts on Bybit, including key features, trading steps and essential risk management techniques.

Inverse futures contracts are a type of trading contract in which a cryptocurrency (such as BTC or ETH), rather than a stablecoin, is used as both the collateral and settlement currency. On Bybit, each inverse contract is valued at 1 USD in BTC or ETH terms, allowing traders to speculate on crypto prices without relying on stablecoins like USDT or USDC.

These contracts are ideal for traders focused on growing their BTC or ETH holdings, as profits are directly realized in BTC or ETH.

For those seeking direct crypto exposure and flexibility in BTC and ETH holdings, inverse futures offer a distinct approach. (For more information, visit the 

Inverse futures contracts on Bybit allow you to trade crypto prices using BTC or ETH as both collateral and settlement currency. Unlike perpetual contracts, these contracts have a fixed expiration date, meaning all positions must be settled by that date. 

Inverse futures contracts are ideal for traders looking for crypto-based settlement and cost-effective long-term positions, as they don’t incur funding fees.

Key Difference Between Linear Futures and Inverse Futures

The main difference between linear and inverse futures contracts lies in their settlement currencies.

Linear futures are preferable for stability, while inverse futures suit traders focused on accumulating crypto.

How to Read Contract Details for Inverse Futures

Each inverse futures contract on Bybit has a unique symbol that provides information on the asset and expiration date. For example, 

 is a Bitcoin (BTC) futures contract quoted in USD and settled in BTC. The contract is set to expire on 

, where MMDD indicates the month and day of settlement.

Why Do Traders Use Bybit Inverse Futures?

Bybit’s inverse futures provide unique benefits for traders.

The above features make Bybit inverse futures appealing for traders with BTC-focused strategies.

To trade inverse futures on Bybit, follow the steps below:

Use Bybit's chart and order book to monitor real-time data, including open interest, volume and contract details for BTCUSD1227.

How to Calculate Profit & Loss for Inverse Futures Contracts

To calculate Profit & Loss (P&L) for an inverse futures contract on Bybit, use the following formula:

P&L = (1/Entry Price − 1/Exit Price) × Contract Quantity

. This represents the profit in BTC for the trade, based on the entry and exit prices. Bybit uses the last traded price (LTP) to calculate P&L for positions closed before the settlement date.

Margin Requirement and Maximum Position Size for Inverse Futures Contracts

Bybit’s inverse futures contracts have specific margin requirements and position limits. 

For BTCUSD, traders can use up to 100x leverage, with the smallest order size set at 1 USD and the maximum single order capped at 1,000,000 USD (up to 100 BTC). 

The total position limit for BTCUSD is 1,000 BTC, while ETHUSD offers leverage up to 50x with a 30,000 ETH position limit.

For more detailed margin requirements, please see 

How to Hedge Positions Using Inverse Futures

 for Bybit’s inverse futures contracts can help protect the USD value of your BTC in a volatile market. This method, known as 

, keeps the dollar value of your BTC stable, even if BTC’s price changes.

 equal to the value of their BTC, Trader A can keep the USD value of their holdings steady, even as BTC’s price rises or falls. This strategy is ideal for those seeking stability in a volatile market.

Conclusion: Getting Started With Inverse Futures Contract Trading 

Bybit’s inverse futures contracts provide unique benefits, such as BTC-based settlement, hedging flexibility and zero funding fees, making them a top choice for traders with crypto-focused strategies. New traders can explore 

 for a risk-free start, building effective habits before diving into live markets. 

How to Trade Inverse Crypto Futures Contracts on Bybit

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards