Bybit, the world's second-largest cryptocurrency exchange by trading volume, in collaboration with analytics firm Block Scholes, has released its latest Crypto Derivatives Analytics Report, indicating a slow but steady recovery in crypto market sentiment following recent sell-offs.
Key highlights from the report include derivatives data showing altcoin perpetual funding rates underperformed during the downturn's deepest point, reflecting strong short exposure demand. In contrast, BTC and ETH perpetual markets remained stable with consistently positive funding rates. As conditions improved, large-cap altcoins such as SOL, TON, CRV, and ADA posted positive funding rates, aligning with spot price rebounds and reduced short pressure.
Options data revealed a decline in short-tenor implied volatility from extreme levels, with put skew easing, moderating expectations for immediate downside. BTC led broader stabilization, trading above 91,000 USDT—levels last seen in April 2025—while ETH surpassed 3,000 USDT. Despite this, open interest and volumes remain subdued, signaling cautious trader participation.
The macroeconomic backdrop provided clarity, with U.S. economic data releases post-government shutdown improving visibility ahead of the Federal Reserve's December 10 policy meeting. Remarks from Fed official John Williams suggested an 80%+ probability of a 25-basis-point rate cut at the upcoming FOMC meeting, reinforcing gains in traditional risk assets like the S&P 500 and supporting crypto market tone.
