Ethereum derivatives have mixed performance against Bitcoin: Bybit

Bybit and analysis firm Block Scholes published a derivatives market report showing mixed signals for Ethereum and Bitcoin.

The report highlights a decline in Ethereum (ETH) persistent open positions, primarily due to the liquidation of overleveraged long positions. According to the report shared with Crypto.news, these positions were accumulated during a period of optimism but were reset as ETH spot prices fell.

The report also notes that ETH futures contracts do not experience the same decrease in open interest as ETH perpetual swap contracts during a brief pause in bullish price momentum. However, positioning for both (BTC) and ETH has increased.

Despite this increase, the overall size of open positions has yet to recover from approximately $20 million in contracts expiring at the end of November 2024. This shows that traders who held contracts expiring in November did not return to the market with the same volume. . In contrast, BTC’s permanent positions have remained stable even after pulling back from a recent high above $100,000.

Perpetual swaps are a type of derivative contract that allows investors to speculate on the price of an asset without owning it. They are widely used in crypto markets, but negative price movements can force leveraged investors to liquidate, reducing market activity.

ETH outperforms BTC in options due to volatility

The report reveals that Ethereum continues to outperform Bitcoin in open interest options, especially as year-end expirations approach. However, trading volumes have decreased, reflecting the general sense of caution in the market.

ETH’s option term structure shows higher volatility compared to future expectations, indicating a difference in sentiment compared to BTC, which exhibits a flatter term structure.