Bitcoin derivatives market shows signs of improved optimism

Bitcoin Reconnects with Equities Following Political Developments

The usual correlation between Bitcoin (BTC) and U.S. equities started to weaken momentarily. The political developments of the time period brought about major changes to the existing situation.
The market jumped across all asset classes after US President Donald Trump revealed large-scale Chinese import tariff reductions which enabled Bitcoin to rejoin the equity price movement.

Bitcoin’s volatility measures at 7-day and 14-day periods increased 12 points. The positive momentum of BTC brought back purchase options at a premium which resulted in a short-term put-call skew recovery exceeding 5%.

The markets operating with perpetual swaps and options continue to grow actively

Perpetual Swaps Show Increased Momentum

The funding rates for Bitcoin maintained positive value throughout its price rally but Ethereum exhibited mixed results even though its spot price increased by 12%.
The BTC price structure became less steep because volatility levels in the near future rebounded to past minimums. The term structure of Ethereum experienced a fresh inversion pattern during this period.

Across many tokens including ETH the perpetual open interest market experienced an around 20% growth expansion. The perpetual trading volumes on Bybit hit $18 billion but did not reach the levels from April 7 when markets had sold off heavily.

Options Markets Reflect Renewed Sentiment

Both call options and put options maintained equal trading volumes within Bitcoin’s market for options. The pension of open interest pointed to put-option capital and showed that traders were adopting defensive positions or seeking protection against downward movements.
Traders demonstrate growing interest in upside market exposure because the BTC short-term put-call skew improved more than 5 points.

Implied volatility at the front end swiftly rose from minimal months ago to establish a position greater than 50% on the term structure.

Crypto market response patterns stem mainly from macroeconomic conditions

The market sentiment showed direct reaction to several major macroeconomic events that took place.

• Consumer confidence levels in the Eurozone reached their lowest point in the last 18 months.
• The latest Richmond Fed Index showed US manufacturing activities continued to deteriorate.
• Both Japan and the United States showed rising inflationary pressures as multiple central banks were preparing for their important meetings.

During the period President Trump suspended “Liberation Day” tariffs the US Dollar Index (DXY) dropped by 4%. The macroeconomic policy transition during this time period propelled Bitcoin’s price upward by 9% while the DXY fell 4%.

The cryptocurrency market strengthening has supported Ethereum to show increased resilience

The recent rally saw Ethereum (ETH) generate superior spot price behavior than Bitcoin which contradicted historical trends.
The ETH options market displayed strong bullish signals because calls captured double the trading volume when compared to puts. The increase in call option trading volumes over spot transactions revealed market confidence was growing for Ethereum which planned to compete against Bitcoin and altcoins particularly SUI and SOL.

Market perspectives during this period exhibited inverted ETH terms and lower volatility parameters than what was observed during earlier months of the year.

Solana’s price has risen yet traders maintain conflicting market expectations

Solana (SOL) generated a 20% increase during the last week yet its price stays far below its peak values from January.
The call option prevalence increased in options markets and put option open interest rose sharply during the bull market run in a manner similar to the Bitcoin options market.
The volatility in SOL follows a commonly observed rising trend typical for coins with high volatility while implied volatility stabilizes at 75% over time.

Conclusion: A Crucial Moment for Crypto Derivatives

The April 2025 edition of the Block Scholes and Bybit report showcases substantial changes occurring within crypto derivative exchanges.
The Bitcoin and Solana and Ethereum market activity increased due to political changes and global economic indicators and improving trader behavior.

Traders need to reset their strategies during rising volatility while upcoming weeks will demonstrate if the current upswing maintains its strength.

The Block Scholes’ research platform provides additional information about the subject.