Derivatives markets reveal vulnerabilities even as Bitcoin and gold perform well, according to the Bybit x Block Scholes Report.

Market Overview and Bitcoin Performance

Despite Bitcoin reaching a new high of $125,000 and Ethereum briefly touching $4,700, underlying derivatives indicators reveal lingering market caution. Perpetual open interest remains below September levels, suggesting profit-taking rather than robust new investment. Options activity reflects this hesitancy, with a bearish skew and historically muted volatility. The surge in Bitcoin and gold prices hasn't fully translated to stronger derivatives positioning.

Derivatives and Options Activity

Market volatility has edged higher, but remains relatively low compared to historical highs, with one-week Bitcoin volatility below 40%. The options market displays a preference for put options, signaling a cautious outlook among traders. Implied volatility has increased modestly, further highlighting a tempered market sentiment despite spot price records. This caution contrasts with the recent rise in spot prices for Bitcoin and gold.

Decentralized Exchange Growth

Decentralized perpetual exchanges have experienced significant growth, exceeding $1 trillion in monthly volume for the first time in September 2025. Aster has emerged as a leading platform within this sector, witnessing a surge in its ASTER token value. Upcoming features like a Layer 1 launch and Pro Mode are fueling demand for enhanced trading infrastructure and privacy options. This indicates growing adoption and innovation within the decentralized finance landscape.