📉 Crypto Derivatives Update: Extreme Positioning Returns :
A new derivatives market report from Bybit in collaboration with Block Scholes shows that crypto derivatives markets have reached their most extreme positioning since 2022.
⚠️ Following Bitcoin’s sharp move toward the $60K area last week, short-term volatility across Bitcoin and Ethereum surged to multi-year highs, reflecting strong demand for downside protection.
📊 Key observations from the report:
Short-dated $BTC and $ETH volatility spiked to levels last seen during late-2022 market stress
Funding rates across major altcoins turned negative, showing cautious trader positioning
$SOL Solana funding reached its lowest levels since late 2025
BTC dominance stayed relatively stable, indicating broad market risk reduction rather than rotation into Bitcoin
🔍 Analysts note that while price recovery attempts have appeared, overall sentiment remains fragile. On-chain data suggests some buying support, but derivatives positioning reflects continued caution across the market.
Markets are now closely watching macro data and liquidity conditions for clearer signals on direction.