Analysis: The cryptocurrency derivatives market remains stable amid recent fluctuations

ChainCatcher news, a report jointly released by Block Scholes and Bybit, indicates that during the recent significant sell-off when BTC fell below $59,000, the open positions in the futures market remained stable, suggesting that traders reduced their leveraged positions, thereby limiting the risk of forced liquidations.

The report notes that this pattern has been consistent throughout the year, reflecting the cautious attitude adopted by market participants during periods of increased volatility. The report highlights the positive changes in TON funding rates following major market events, further indicating a rekindled interest in leveraged positions. It also reveals the market's perspective on the upcoming U.S. presidential election. According to the analysis, the volatility term structure suggests a strong bullish sentiment for cash call options expiring after the election. This implies that traders expect a favorable environment for crypto assets post-election.

Additionally, the report observes a sustained demand for downside protection with short-term expirations, reflecting a cautiously optimistic sentiment in the market. The findings from Block Scholes and Bybit suggest that a mature crypto derivatives market can quickly adapt to changing dynamics. Even amid significant events, the market has remained stable, indicating that traders' confidence is strengthening.