Bybit, the world’s second-largest cryptocurrency exchange by trading volume, has released its latest weekly crypto derivatives report in collaboration with Block Scholes. The report provides an analysis of the past week’s sell-off and movements in the options market.
A broad market retreat wiped out an estimated $10 billion in open interest, following an active Friday in the 24/7 crypto markets. Among major tokens, BTC was the only one maintaining positive funding rates, while ETH faced significant turbulence, with its options market signaling further downward pressure.
Trump Sell-Off
On Feb. 3, Trump’s tariff threats triggered a major sell-off across markets, including crypto and U.S. equities. The crash erased $3.1 billion in perpetual swap open interest across BTC, ETH, XRP, and SOL. Ben Zhou, co-founder and CEO of Bybit, noted, “$8-10B in total liquidations” as leveraged positions were wiped out. Trading volumes hit a monthly high of $31 billion in perpetual swaps on Feb. 2 as traders rushed to close positions.
Altcoins Struggle
The crypto market continued to struggle after another rough Monday. Funding rates for perpetual swaps dropped sharply as traders exited long positions. BTC, however, maintained neutral funding rates, showing relative strength amid the volatility.
Ethereum to Fall Further
ETH has been less resilient than BTC during the downturn. Spot prices dipped below $2.5K, though open interest remained stable due to lower-than-expected options market volatility. However, realized volatility surged to nearly 140%, and the options term structure suggests further downside risks that may not yet be fully priced in.
