DUBAI, UAE, December 5, 2025 /PRNewswire/ — Bitethe world’s second largest cryptocurrency exchange by trading volume has released its latest version Crypto Derivatives Analytics Report in partnership with Block Scholes, revealing cautiously optimistic signals in the cryptocurrency markets after a volatile start to December.
The analysis examines market dynamics following the sharp sell-off on December 1, triggered by aggressive signals from the Bank of Japan. Despite positive developments, including Vanguard’s opening of crypto ETF trading, derivatives data suggests traders remain cautious as trading in major cryptos remains well below all-time highs.
“Cryptocurrencies have been buffeted by multiple crosswinds, from shifting expectations around the policies of major central banks to increasing concerns about the viability of DATs,” says Han Tan, chief market analyst at Bybit Learn. “Major crypto prices are likely to remain dependent on macro forces in the near term, especially with the Fed’s crucial interest rate decision looming, even as the crypto world tries to shake off the ghosts of the October 10 liquidation,” he added.
Main highlights:
- Market recovery underway: BTC has recovered to a two-week high above $93,000, while ETH has regained the psychological $3,000 level after a sharp sell-off in early December, triggered by aggressive signals from the Bank of Japan. Positive catalysts, including Vanguard’s decision to open its platform to crypto ETF and mutual fund trading, have supported the recovery.
- Subdued downward fear: Options traders have significantly reduced their bearish positioning, with put-call skew premiums falling sharply from 10-13 percentage points at the start of the month to just 2-4 percentage points currently. This indicates that traders are pricing crash protection at much less premium than just a week ago.
- Damped Lever Activity: Open interest in perpetual futures has increased modestly during the recovery, but remains well below pre-October 10, 2025 levels. The data suggests lower participation rates in leveraged positions, with recent sell-offs showing no signs of liquidation cascades typically characteristic of over-indebted markets.
- The Fading Bear: Block Scholes’ proprietary Risk Appetite Index indicates that while sentiment is shifting in a positive direction, market participants have not yet turned bullish. This cautious stance is not surprising as both BTC and ETH continue to trade significantly below their all-time highs.
The report also spotlights the Basic Attention Token (BAT), which has risen more than 100% since October 11 to around $0.27, significantly outpacing the broader altcoin recovery. The Ethereum-based token, which powers Brave Browser’s privacy-focused advertising ecosystem and serves more than 100 million monthly users, has helped social tokens become the second-best performing sector in the past month, behind only privacy coins.
For detailed insights, readers can download the full report.
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About Bybit
Bybit is the second largest cryptocurrency exchange in the world by trading volume, serving a global community of more than 70 million users. Founded in 2018, Bybit is redefining openness in the decentralized world by creating a simpler, open and equal ecosystem for everyone. With a strong focus on Web3, Bybit strategically partners with leading blockchain protocols to provide robust infrastructure and drive on-chain innovation. Known for its secure custody, diverse marketplaces, intuitive user experience, and advanced blockchain tools, Bybit bridges the gap between TradFi and DeFi, allowing builders, makers, and enthusiasts to unlock the full potential of Web3. Discover the future of decentralized finance at Bybit.com.
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