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The latest Bybit and Block Scholes report reveals that the Bitcoin options market has maintained stability in the face of year-end expiration, while Ethereum options are set for short-term volatility.
According to A a report Published by Crypto Exchange Bybit and analytics platform BlockScholes, open interest in Bitcoin (Bitcoin) Perpetual swaps remained stable throughout the year-end expiration period. This stability came as a surprise, as options approaching their expiration date usually cause price fluctuations.
The report notes that traders are cautious but confident enough in the stability of their options that they are not overly reliant on perpetual contracts to hedge the delta of expiring options. As a result, Bitcoin OI has remained relatively stable, despite muted volatility and failure to recover to its higher levels in December.
Ditto I mentioned By crypto.news, the OI of Bitcoin futures fell below the $60 billion threshold. Total Bitcoin investment OI currently stands at around $56.6 billion, after falling at the beginning of January 2025. However, it has not fallen to early November levels, when it fell below $40 billion.
The report notes that the implied volatility term structure for Bitcoin options remains steep, with implied volatility expected to remain at 57% over a one-week options trading period five points lower.
Most of the expiring open interest has not yet been reinvested, resulting in a neutral balance when the call is placed. This indicates that the BTC options market is showing limited leverage compared to its position at the beginning of December 2024.
Likewise, Ethereum (Ethereum) The options remained stable until the end of December 2024. However, the ETH spot price shows lower volatility compared to the short-term implied volatility.
Over the past week, the implied volatility term structure for ETH options briefly declined before flattening again. In contrast to BTC’s ongoing decline, ETH’s pattern suggests that its options market is bracing for potential short-term volatility in spot price movements.
Despite the approaching expiration dates, ETH call options have gained momentum at the beginning of 2025. At the time of writing, the Ethereum OI price is $25.5 billion, and is back at mid-December levels.
