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The State of Crypto Options Markets After the Recent Sell-Off (Report)

The beginning of this week was a bit cranky for the financial market, with sharp declines across major stock indexes and digital assets amid the launch of DeepSeek’s artificial intelligence (AI) model. Despite the volatility that came with the sell-off, open interest in perpetual swaps for Bitcoin and other leading cryptocurrencies remained stable, while funding rates momentarily became negative before recovering. The options market also recorded an uptick in trading activity during the sell-off. Ethereum Options More Bullish Than Bitcoin However, according to a report by the crypto exchange Bybit and the institutional-grade research firm Block Scholes, the aftermath of the risk-off event sees Ethereum options looking more bullish than Bitcoin options. Ethereum options have maintained a volatility premium over their Bitcoin counterparts. Over the past month, trading volume for Ethereum options has been at strong levels. The derivatives saw similar activity levels between late December 2024 and early January 2025. However, the latest data shows more call activity. Open interest data has also tilted majorly toward call options. The spot sell-off earlier this week caused investors to briefly refrain from placing call options; however, Ethereum options have continued to trade at higher volatility levels relative to Bitcoin. Notably, the same cannot be said for ether’s (ETH) spot price, which has been lagging behind bitcoin’s (BTC). Bitcoin Options Volatility Declines Even Solana options are seeing solid open interest in puts and calls, with trading activity exceeding levels seen during a price rally driven by the launch of two presidential memecoins on the network. Bybit and Block Scholes said stable levels of newly opened put options on the Solana network suggest investors are strategically buying to hedge profitable long positions in other financial instruments. As for Bitcoin, current data shows little change in the options market over the past week, except for the expiration and reopening of short-dated trades. “Short-tenor options are trading with lower volatility and a neutral skew, while longer-dated volatility smiles are trading with increased volatility expectations and a persistently bullish skew toward OTM calls — as they have for much of the post-election period,” the report explained. Meanwhile, the Bitcoin options market recorded the highest single-day trading volume for calls this month, reaching $250 million during the spot price decline. However, volatility has continued to decline in both realized and implied terms since then. The post The State of Crypto Options Markets After the Recent Sell-Off (Report) appeared first on CryptoPotato .

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Trump’s Solana Meme Coin Faces Criticism and Price Drop Following His Social Media Promotion

The recent plunge of President Trump’s Solana-based $TRUMP meme coin has stirred considerable conversation among crypto enthusiasts and critics alike. Despite a promotional post from Trump, the token has experienced Crypto Potato

Bitcoin Analysts Warn of a $95K ‘Bear Trap’ Ahead Despite $100,000 Monthly Close

Uncertainty has hit the Bitcoin (BTC) market despite closing January above the psychological $100,000 level. However, the leading digital asset has slid below this notable level just a day before the first business day in February. Is Inflation Fears Behind Bitcoin’s Dip? Market observers attribute the dip to inflation worries that have swept the broader market. Most market participants fear that President Donald Trump’s imposition of tariffs on the trio of Mexico, Canada, and China could trigger inflation. Others see the dip as part of a wider market correction, which could plunge BTC to $95,000. Ryan Lee, chief analyst at Bitget Research, however, identifies $95,000 as a crucial support level. Lee stressed the need for investors to monitor the broader financial space as it concerns federal policy expectations. He also expects market sentiments to play a role in determining the next move for Bitcoin. Bear Trap or Market Correction? Interestingly, Lee believes Bitcoin’s price might react to macroeconomic factors. Notably, the U.S. labor report could shape the coin’s price outlook for February. The Bureau of Labor Statistics in the U.S will release its market report by Friday, February 7. The price of Bitcoin could regain higher levels if the market report data paints the picture of a “slow economy.” This might spur investors to consider accumulating Bitcoin as an alternative, and the demand could push the price up. Meanwhile, Sensei, another analyst on X, in a post , described the current Bitcoin dip as a “huge bear trap.” He noted that BTC traders anticipating further decline might get caught unaware of Bitcoin’s rebound. Huge Bear Trap. Be ready. pic.twitter.com/MDkqMrDNsG — Sensei (@SenseiBR_btc) February 2, 2025 Sensei calls on traders to exercise caution, particularly those trading on short positions. If his projections turn out accurate, Bitcoin might record a sharp recovery. Analysts Predict Bitcoin to $180,000 As of this writing, Bitcoin is changing hands at $99,250.69, representing a 2.57% decline in the past 24 hours. The coin hit a low of $98,137.60 in earlier trading but has seen a mild 3.34% uptick to $42.78 billion in trading volume. Analysts have projected that Bitcoin could climb as high as $180,000 in 2025 as they anticipate the coin to have a bullish year. The post Bitcoin Analysts Warn of a $95K ‘Bear Trap’ Ahead Despite $100,000 Monthly Close appeared first on TheCoinrise.com . Crypto Potato