The cryptocurrency market is showing early signs of stabilization following a tumultuous start to December, according to a recent Crypto Derivatives Analytics Report released by Bybit, in partnership with Block Scholes. This report offers in-depth analysis of the derivatives data and trading patterns after the sharp selloff that began on December 1, fueled by hawkish statements from the Bank of Japan.
Bitcoin and Ethereum Rebound Amid Renewed Optimism
After the initial market drop, Bitcoin (BTC) has bounced back to a two-week high above $93,000, while Ethereum (ETH) has regained the critical $3,000 mark. The recovery has been supported by positive sentiment surrounding the launch of crypto exchange-traded funds (ETFs) by Vanguard.
Despite the rebound, the report notes that traders are treading cautiously as cryptocurrency prices remain significantly below their all-time highs. According to Han Tan, Chief Market Analyst at Bybit Learn, “Major crypto prices will likely remain influenced by macroeconomic factors, especially with the Federal Reserve’s interest rate decision looming.”
Changing Sentiment in the Options Market
The report reveals a positive shift in the options market. Bearish positions on major cryptocurrencies have been scaled back significantly. The put-call skew premiums have decreased from 10–13% at the start of the month to just 2–4%, indicating that traders are now pricing crash protection with less urgency.
Additionally, perpetual futures contracts have experienced a modest increase in open interest, although trading activity is still subdued when compared to levels before October. This trend points to cautious sentiment and lower leveraged trading activity, suggesting a more measured approach amid the market’s ongoing recovery.
Emerging Winners: Basic Attention Token (BAT)
The report also highlights the strong performance of the Basic Attention Token (BAT), which has seen an impressive rise of over 100% since October 11, reaching approximately $0.27. BAT is an Ethereum-based token that powers the Brave browser’s privacy-focused advertising ecosystem, which serves more than 100 million users worldwide. This significant price surge underscores the growing strength of social tokens as a distinct asset class, second only to privacy coins in performance during the past month.
Improved Market Sentiment, But Caution Remains
Block Scholes’ proprietary Risk Appetite Index, which measures investor sentiment, reflects signs of recovery and optimism. While the index points to improving conditions, investors are still adopting a cautious stance. The market’s current sentiment shows that traders are closely monitoring macroeconomic signals before committing to sizeable investments.
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As the end of the year approaches, market participants remain hopeful that the current trends will provide a base for continued growth in digital assets. However, the interplay between macroeconomic developments and crypto-specific innovations will remain critical in shaping the market’s trajectory.
