Bybit, the second-largest cryptocurrency exchange globally by trading volume, has released its latest Crypto Derivatives Analytics Report in collaboration with Block Scholes. The report analyzes market conditions surrounding the Federal Open Market Committee’s (FOMC) final meeting of the year, held on December 13, 2025. At this meeting, policymakers announced a widely anticipated 25 basis point rate cut, yet the response from the cryptocurrency markets remained subdued.
Market Sentiment Remains Cautious
The report highlights that open interest in perpetual contracts remains significantly lower than levels recorded prior to October 10, 2025. Funding rates in leveraged contracts indicate that retail traders are hesitant to re-enter positions in perpetual swap contracts. This reluctance reflects a broader sentiment of caution across the crypto derivatives market.
In the options market, volatility smiles for both Bitcoin (BTC) and Ethereum (ETH) display a bearish trend. Currently, out-of-the-money (OTM) puts are priced at nearly a 5 percent premium compared to calls for both short- and long-dated options. As a result, those hoping for a year-end rally, often referred to as the “Santa rally,” may face disappointment based on the current positioning in the derivatives markets.
The report indicates minimal shifts in perpetual swap activity, subdued implied volatility, and a consistent skepticism in options positioning. Despite the Federal Reserve’s optimistic economic outlook, the sentiment within the crypto derivatives market remains cautious. Presently, BTC’s spot price is approximately 28 percent below its all-time high, and options markets continue to indicate a demand for downside protection.
Limited Appetite for Leverage
According to Han Tan, Chief Market Analyst at Bybit Learn, the broader macroeconomic backdrop significantly influences reactions in the crypto markets. He noted, “The Fed’s policy outlook will frame market reactions to this week’s US jobs report and inflation data releases. Crypto bulls still have their work cut out to get any upside momentum going, considering that digital assets could only muster a tepid response to the final FOMC meeting of 2025, in stark contrast to global equities that surged to new record highs.”
The analysis concludes that traders are showing a limited appetite for re-engaging with leverage, while options markets continue to reflect caution across both short and long horizons. Current market positioning suggests a tempered outlook for any potential year-end rebound.
For those interested in a deeper understanding of these trends, the full report is available for download. Bybit continues to offer insights into the evolving landscape of cryptocurrency, serving a global user base of over 70 million since its founding in 2018. The exchange aims to redefine openness in the decentralized world by providing a robust infrastructure and fostering on-chain innovation.
For further details, please visit Bybit’s official website or their various social media channels.
