Latest news with #BlockScholes
Cision Canada
6 days ago
- Business
- Cision Canada
Bybit & Block Scholes: ETH-BTC volatility hits five-year high as ETH plays catch-up
DUBAI, UAE, June 17, 2025 /CNW/ -- Bybit, the world's second-largest cryptocurrency exchange by trading volume, released a new options volatility report in collaboration with Block Scholes. The report shows a historic volatility divergence between Ethereum (ETH) and Bitcoin (BTC) during May 2025. Key Highlights: In May 2025, ETH options exhibited historically high volatility premiums over BTC, driven by ETH's elevated realized volatility during a major price rally. The ETH-to-BTC implied volatility ratio for short-dated options surged past 2x — reaching a nearly five-year high. BTC's realized volatility fell below a long-standing 35% floor, breaking a 19-month trend. ETH's volatility term structure showed persistent inversion, with shorter-dated options pricing higher volatility than longer-dated ones. The implied volatility divergence coincided with ETH's outperformance, which included a 23% intraday rally amid key market events. ETH-to-BTC Implied Volatility Expands to Five-Year High In May 2025, a notable dislocation in implied volatility emerged between ETH and BTC options. Implied volatility reflects market expectations for future price movement over an option's lifespan. At the start of the month, the ETH-to-BTC implied volatility ratio for 7-day options hovered around 1.5 — indicating that ETH options were priced with 50% higher expected volatility than BTC options. By May 16, the ratio climbed above 2x, reaching a peak not seen since 2020, as BTC's implied volatility declined to its lowest levels since October 2023. This drop in BTC volatility broke below the 35% floor that had held for over 19 months, while ETH's short-tenor implied volatility remained elevated, though slightly below its May 10 high. The volatility spread was particularly pronounced in the 30-day tenor, reaching its widest point since mid-2022. Realized Volatility Trends Underscore the Divergence The sharp divergence in implied volatility was reinforced by trends in realized volatility — a measure of actual historical price movement. In May, ETH's realized volatility significantly outpaced BTC's across various tenors, fueling expectations for continued dispersion between the two assets. On May 15, the 7-day realized volatility ratio between ETH and BTC peaked, closely followed by the implied volatility ratio — suggesting market participants expected ETH's higher volatility to persist. This trend is not new: the ETH-BTC volatility ratio has been climbing steadily since July 2024, amid both bull runs and periods of market stress. ETH's standout performance in May was catalyzed by several factors, including positive US-UK trade news. ETH surged more than 23% on May 8 alone and continued to outperform BTC, which gained approximately 10% during the same period. Despite this momentum, ETH remained over 50% below its January 2025 peak and its all-time high. #Bybit / #TheCryptoArk / #BybitReport About Bybit Bybit is the world's second-largest cryptocurrency exchange by trading volume, serving a global community of over 70 million users. Founded in 2018, Bybit is redefining openness in the decentralized world by creating a simpler, open and equal ecosystem for everyone. With a strong focus on Web3, Bybit partners strategically with leading blockchain protocols to provide robust infrastructure and drive on-chain innovation. Renowned for its secure custody, diverse marketplaces, intuitive user experience, and advanced blockchain tools, Bybit bridges the gap between TradFi and DeFi, empowering builders, creators, and enthusiasts to unlock the full potential of Web3. Discover the future of decentralized finance at
Cision Canada
26-05-2025
- Business
- Cision Canada
BTC Hit ATH as Options Skew Favors Calls by 7%: Bybit x Block Scholes Report
DUBAI, UAE, May 26, 2025 /CNW/ -- Bybit, the world's second-largest cryptocurrency exchange by trading volume, released a new weekly crypto derivatives analytics report in collaboration with Block Scholes on May 22, as the markets hit all-time highs (ATH) all around from BTC spot price to perpetual swaps open interest, while ETH's pace of growth moderated. Key Highlights: Risk-On Sentiment Dominated: Perpetual open interest across the board on Bybit has been on a steady rise and reached a new monthly high at over $11B, with trading volume also recording its May best at $26B. The market-wide trajectory was supported by BTC's $111k ATH, did not outperform ETH's meteoric rise the week before. ETH Growth Rebalanced: ETH's two-week outperformance streak has ended, now trailing BTC's renewed rally. Despite strong 69% monthly returns, ETH's weekly gains have slowed. Short-term volatility still trades at a premium, but options sentiment has become less bullish, with the gap between call and put activity narrowing to just $30M. For detailed insights, readers may download the full report. #Bybit / #TheCryptoArk /#BybitResearch About Bybit Bybit is the world's second-largest cryptocurrency exchange by trading volume, serving a global community of over 70 million users. Founded in 2018, Bybit is redefining openness in the decentralized world by creating a simpler, open and equal ecosystem for everyone. With a strong focus on Web3, Bybit partners strategically with leading blockchain protocols to provide robust infrastructure and drive on-chain innovation. Renowned for its secure custody, diverse marketplaces, intuitive user experience, and advanced blockchain tools, Bybit bridges the gap between TradFi and DeFi, empowering builders, creators, and enthusiasts to unlock the full potential of Web3. Discover the future of decentralized finance at
Cision Canada
19-05-2025
- Business
- Cision Canada
ETH on the Rise: Bybit x Block Scholes Report Reveals Optimistic Market Signals
DUBAI, UAE, May 19, 2025 /CNW/ -- Bybit, the world's second-largest cryptocurrency exchange by trading volume, released a new weekly crypto derivatives analytics report in collaboration with Block Scholes, detailing the interplay between BTC and ETH's rapid ascend in the past week, with ETH in the lead gaining 40% in spot prices. Bybit's trading data recorded positive funding data across the board with positive futures curves and call-side volatility smiles at all tenors. Key Highlights: ETH's Winning Streak: The spell of good news moved markets in the last few days, adding some $900M in ETH open interest in the rally which peaked between May 11 and 12. Crypto's second favorite poster child overtook BTC for the second week in a row, and derivatives indicators suggest further upside as investors put more calls than puts on the table, readying ETH for another surge. BTC Volatility: BTC's return to $100K since early February coincided with the broader bullish ambience, with its short-term volatility dropped to a low 38%. A 5% skew towards OTM calls suggests continued risk-on sentiment, despite put options dominating with over $200M in volume compared to $140M for calls. Access the Full Report For detailed insights, readers may download the full report. #Bybit / #TheCryptoArk /#BybitResearch About Bybit Bybit is the world's second-largest cryptocurrency exchange by trading volume, serving a global community of over 70 million users. Founded in 2018, Bybit is redefining openness in the decentralized world by creating a simpler, open and equal ecosystem for everyone. With a strong focus on Web3, Bybit partners strategically with leading blockchain protocols to provide robust infrastructure and drive on-chain innovation. Renowned for its secure custody, diverse marketplaces, intuitive user experience, and advanced blockchain tools, Bybit bridges the gap between TradFi and DeFi, empowering builders, creators, and enthusiasts to unlock the full potential of Web3. Discover the future of decentralized finance at
Cision Canada
14-05-2025
- Business
- Cision Canada
Bybit Crypto Insights: Timing ETH's Bull Run
DUBAI, UAE, May 14, 2025 /CNW/ -- Bybit, the world's second-largest cryptocurrency exchange by trading volume, has recently released a weekly crypto derivatives analytics report in collaboration with Block Scholes, followed by an exclusive insights report with the spotlight on ETH' great comeback. With investors flocking to ETH following the Pectra upgrade, the research shed light on what every trader is asking: will the ETH rally last? Leading the race since May 7, ETH has been a tour de force with wild gains dwarfing that of BTC's. Key Highlights: It wasn't just Pectra: The new insights report by Bybit, published on Tuesday, attributed ETH's "landmark surge" to drivers beyond the Pectra upgrade. A deep dive into underlying factors that built momentum for ETH's breakout moment. Macroeconomic developments including signs of relief in the tariffs debacles created conditions for the broader markets to recover, while over $500 million in ETH short liquidations had an immediate and positive effect on its price performance. The report also mapped out a change in leadership direction and Vitalik Buterin's new vision for Ethereum, which include a package of reforms to streamline processes and boost efficiency and flexibility. With transition plans for existing projects, the leadership set out to build a more durable and scalable Ethereum blockchain with up to 100x throughput. ETH Outperformed BTC: In last week's Bybit and Block Scholes report, ETH's new high of single-day gain since 2021 outshone the top rest of the top ten cryptocurrencies. With the spike in implied volatility for short term tenors and ETH's inverted term structure, crypto's No. 2 currency won over derivatives traders placed $60 million more in calls than puts for ETH on May 8, 2025, in contrast to BTC's muted structure. ETH stood out in the rally across almost all indicators, radiating positivity from funding rates to the close to 10% put/call skew towards calls in the first week of May, a world apart from its 20% skew on the puts side only a month ago. #Bybit / #TheCryptoArk /#BybitResearch About Bybit Bybit is the world's second-largest cryptocurrency exchange by trading volume, serving a global community of over 70 million users. Founded in 2018, Bybit is redefining openness in the decentralized world by creating a simpler, open and equal ecosystem for everyone. With a strong focus on Web3, Bybit partners strategically with leading blockchain protocols to provide robust infrastructure and drive on-chain innovation. Renowned for its secure custody, diverse marketplaces, intuitive user experience, and advanced blockchain tools, Bybit bridges the gap between TradFi and DeFi, empowering builders, creators, and enthusiasts to unlock the full potential of Web3. Discover the future of decentralized finance at
Zawya
09-05-2025
- Business
- Zawya
Cryptoverse: As markets question US exceptionalism, bitcoin starts to shine
(Our regular analysis of cryptocurrencies) It's late to the sell-USA party. But bitcoin is finally reclaiming its place as a big alternative for investors spooked by President Donald Trump's trade war and keen to dump U.S. stocks, Treasuries and the dollar. After an initial tumble to its lowest levels this year soon after Trump announced his Liberation Day tariffs on April 2, the notoriously volatile bitcoin has slowly clawed back ground. It managed to outperform stock markets in 10 out of 17 sessions in that period, VanEck data shows. The world's top and original cryptocurrency is now a whisker away from the $100,000 mark last seen three months ago, after a 15% rise in April alone. By comparison, the S&P 500 slipped around 0.8% in April, the tech-focused Nasdaq Composite eked out 0.8% gains last month, while the U.S. dollar index fell over 4%. "The most recent price action may have begun to validate the view that Bitcoin is not just the 501st company in the SPX," analysts at research firm Block Scholes said. Bitcoin is up 33% from its April low in a surprising turn for the cryptocurrency, given how closely it has mimicked the performance of equity markets in periods of market turmoil- particularly the tech sector - over the past few years. Correlations between bitcoin and other asset classes have also shifted, according to Block Scholes, and bitcoin is the most inversely correlated to the steepness of the Treasury yield curve in over two years. "Investors are really starting to respond to (bitcoin) as a potential diversifier," said Ben McMillan, chief investment officer at IDX Advisors. Bitcoin has even outperformed gold's 11% rise since April 2, despite the safe-haven metal's surge to record highs. Measures of bitcoin's expected volatility have dropped to 18-month lows, as per Block Scholes. "The damage has been done in terms of trust towards the U.S. and dollar assets ... but you can't (diversify) overnight," said Martin Leinweber, director of digital asset research & strategy at MarketVector Indexes. "What kind of neutral assets do you have? Underlying that is really a supportive shift towards bitcoin and crypto." Investors have also turned more bullish on digital asset-focused investment products, with roughly $5.5 billion over the last three weeks flowing into those funds, as per CoinShares data, including $1.8 billion in the week through May 3 for bitcoin products. If changing tariff policies continue to drive a move away from U.S. assets, bitcoin could find its next leg higher, Geoff Kendrick, global head of digital asset research at Standard Chartered Bank said in a note to clients. "We expect a strategic asset reallocation away from U.S. assets to trigger the next sharp upswing in bitcoin in the coming months," Kendrick said, adding he sees bitcoin hitting a new record high of around $120,000 in the second quarter of 2025. TOO MUCH, TOO SOON It's far too early, however, to say bitcoin has severed its ties with macroeconomic developments. Bitcoin's 30-day correlation to the S&P 500 briefly dipped to 0.45 in early April but has crept back up to 0.87, as per LSEG data, where 1 indicates they are moving in lockstep. And it still remains some ways away from its January record high. "I think we'll inevitably see periods going forward where bitcoin's correlation (to risk assets) rises again," said IDX Advisors' McMillan. "But the key point is, it is starting to take on trading characteristics of its own." (Reporting by Lisa Mattackal in Bengaluru; Editing by Vidya Ranganathan and Alexandra Hudson)
