Within a few days after the conclusion of the United States presidential elections, investor sentiment in the crypto derivatives market has changed, revealing a major shift towards bullishness and a huge appetite for leveraged long positions.by the leading digital asset trading platform Bybit, in partnership with the research and analysis firm Block Scholes, there is increased open interest in perpetuals and futures contracts and a decline in short-term volatility.
Perpetual funding rates are also positive, indicating that traders are willing to pay a premium for leveraged long exposure even as BTC has retraced a bit from its new all-time high. This has led to a drop in implied volatility for BTC and ether in short-dated options. Bitcoin’s term structure is currently flat, while ether’s is in a steep curve after two weeks of prolonged inversion. Bybit and Block Scholes asserted that this change signals the resolution of event risk as the crypto market’s favored candidate was elected with no sign of a contested outcome.In addition, the derivatives market is seeing high trading volumes, indicating sustained market activity.
“This sustained volume and increase in open interest indicate that market participants are actively positioning themselves in response to the growing clarity surrounding the election outcome,” the report added.What Is The Open Network : All You Need to Know in 2024Sign-up FREE to receive our extended weekly market update and coin analysis report
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