Bybit, a leading cryptocurrency exchange, has released its latest Bybit x Block Scholes Crypto Derivatives Analytics Report in collaboration with Block Scholes. This report highlights limited impact of the ongoing US government shutdown on digital assets, renewed caution in the options market, and rising interest in privacy tokens like Zcash (ZEC). Key Takeaways**
Limited Impact from Shutdown: Bitcoin and Ethereum quickly rebounded from late-September liquidations, with BTC trading above $118K and ETH at $4,400.
Options Market Cautious: Despite limited volatility for Bitcoin and Ethereum, options pricing remains defensive, favoring put options to reflect caution.
Privacy Tokens Outperform: Zcash (ZEC) experienced a surge, almost doubling in value, driven by new integrations like Zashi CrossPay and the growing concern over global surveillance.
The report notes that despite economic uncertainty, crypto assets have demonstrated resilience in spot markets following September’s correction.
Bitcoin saw its implied volatility collapse to levels not seen since mid-2023, reflecting subdued realized volatility. Yet options markets remain cautious, with long-dated tenors continuing to price in downside risk through put-skewed volatility smiles.
Ethereum options also reveal a risk-averse posture. Volumes surged during ETH’s September dip, with positioning heavily favoring puts. Spot ETF outflows further highlighted market caution, while implied volatility continued to trend lower throughout the month.
Privacy-focused assets, particularly Zcash, stood out recently. ZEC nearly doubled in value, boosted by the launch of Zashi CrossPay, its integration with THORSwap and heightened global debate over digital surveillance. Its impressive performance outpaced other leading privacy tokens.
Full analysis is available in the Bybit x Block Scholes Crypto Derivatives Analytics Report.