Bybit Reports Macro Factors Impacting Crypto Market Ahead of Trump Inauguration
Bybit released a report indicating that macro factors are impacting the crypto market, with Bitcoin struggling to surpass $100K. Investor sentiment may hinge on the upcoming inauguration of Donald Trump, who aims to position the U.S. as a global crypto hub.
Key points from the report include:
- Increased uncertainty in the crypto derivatives market ahead of Trump's inauguration.
- Significant liquidity drop in the perpetual swap market during the holiday period.
- Stable open interest in options markets for Bitcoin and Ethereum despite limited hedging activity.
- Divergence between implied and realized volatility noted, with ETH showing higher demand for call options.
- The gap between 30-day implied volatility and 7-day realized volatility has reached its highest level since the U.S. elections.
- ETH options are gaining traction, but the overall volume is still dominated by put options.
- Short-term volatility remains significantly above realized volatility, indicating heightened risk perception among traders.
Investors are advised to remain cautious due to ongoing uncertainties that could shape the crypto landscape in the near future.
