Bybit x Block Scholes Crypto Derivatives Analytics Report (Jul 23, 2025): Positive regulations propel crypto to an ATH; ETH derivatives show positive sentiment
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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 week kicked off with major gains in the crypto market, as Bitcoin soared to a new all-time high of $123,000. However, momentum soon shifted to altcoins, propelling the total crypto market cap beyond $4 trillion for the first time. Ether’s price climbed past $3,800, and Solana — after lagging behind other Layer 1 blockchains — broke the $200 mark. Legislative activity also made headlines: U.S. President Trump signed the GENIUS Act into law, while the House passed both the CLARITY Act and the Anti-CBDC Surveillance State Act.
On the derivatives side, Bitcoin perpetuals saw open interest climb to over $15 billion amidst a 5% decline in BTC dominance. In options markets, ETH and SOL exhibited inverted volatility term structures during their rallies, although these have since compressed. Meanwhile, BTC options have traded within a 31–41% implied volatility range since July 14, 2025.
Please check out the report’s highlights.
Altcoins see remarkable positive funding rates
Sources: Bybit, Block Scholes
“Crypto Week” began with a strong BTC rally that peaked before profit-taking triggered a retreat to $116–117K, redirecting market attention to altcoins. ETH climbed to a year-high of $3,800, and widespread gains across altcoins pushed the total crypto market cap past $4T, holding steady at that level. BTC’s drop, paired with rising altcoin performance, caused its dominance to fall below 60%.
Meanwhile, funding rates on perpetual swaps spiked aggressively, signaling increased risk appetite, with several altcoins — including SOL, XRP, DOGE, CRV and ADA — posting unusually high eight-hour rates above 0.02% throughout the week.
ETH options dominated by call options
Sources: Bybit, Block Scholes
ETH’s term structure of volatility has completely compressed to between 64–65%, following an inversion as its spot price surged to $3,800. Options volumes and open interest are both currently dominated by call options for ETH as well.
Ether sees strong positive signals from derivatives
Sources: Bybit, Block Scholes
The moves in options markets for ETH have been more dramatic, as the call skew rose as high as 11%, mirroring the directional sentiment in other derivatives markets metrics, such as futures spot yields and perpetual swap funding rates. Currently, volatility smiles across the term structure for ETH are skewed toward call options, with the skew on 7-day ETH options at 6.8%.
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