Bitcoin perpetual swaps stabilize amidst year-end, Ethereum options on track for short-term volatility: report

The latest report from Bybit and Block Scholes reveals that the Bitcoin options market has maintained stability despite year-end expirations, while Ethereum options are poised for brief volatility.

According to a report published by crypto-exchange Bybit and Block Scholes analysis platform, open interest in Bitcoin (BTC) perpetual swaps remained stable throughout the year-end expirations. This stability came as a surprise, as options close to their expiration date typically cause price fluctuations.

The report suggests that traders are cautious but confident enough in the stability of their options not to rely too heavily on perpetual contracts to cover the delta of expiring options. As a result, Bitcoin OI has remained relatively stable, despite moderate volatility and its inability to regain its higher levels from December.

As before reported According to crypto.news, Bitcoin Futures OI has fallen below the $60 billion threshold. The total amount of BTC OI currently stands at around $56.6 billion, after falling in early January 2025. However, it has not fallen as low as the levels in early November, when it fell below of 40 billion dollars.

The report notes that the term structure of implied volatility for BTC options remains high, with implied volatility expected to remain at 57% over a one-week period for options trading below five points.

Most expired open interest has not yet been reinvested, resulting in a neutral call-put balance. This indicates that the BTC options market has limited leverage compared to its position at the start of December 2024.

Likewise, Ethereum (ETH) options remained stable until the end of December 2024. However, the spot price of ETH exhibits lower volatility than its short-term implied volatility.

Over the past week, the term structure of ETH options implied volatility briefly dipped before stabilizing again. Unlike BTC’s steady slowdown, ETH’s trend suggests its options market is bracing for potential near-term volatility in spot price movements.

Despite expiration dates approaching, ETH call options gained momentum in early 2025. At the time of writing, Ethereum OI stands at $25.5 billion, returning to its mid-December levels.