Sentiment in the crypto derivatives market is improving as bitcoin rallies to its highest level in two months, according to a joint analysis from Bybit and Block Scholes. Bybit’s Risk-Appetite Index has moved higher, indicating that traders are increasingly opening perpetual futures positions in anticipation of further upside in spot prices.
The report notes that bitcoin’s recovery into the upper $90,000 range has been accompanied by rising funding rates and growing open interest, signaling renewed confidence among derivatives traders. BTC’s breakout aligned with higher perpetual futures activity across several altcoins, while futures term structures have begun clustering at similar levels. At the same time, short-dated options have shifted toward a more neutral volatility skew.
Open Interest and Risk Appetite Increase
Prior to the rally, bitcoin had been trading within an $85,000–$95,000 range. The move toward $97,000 pushed total open interest above $8 billion across nine major cryptocurrencies. As BTC climbed, altcoins followed, with open interest returning to levels last seen earlier this year when bitcoin surged to $94,000.
The rise in derivatives activity has been reinforced by steady inflows into altcoin spot ETFs. Funds tied to ether (ETH), Solana (SOL), and XRP have recorded several consecutive days of inflows over the past week, supporting broader market momentum.
In the options market, bitcoin’s breakout had limited impact on at-the-money volatility. While realized volatility briefly increased late last week, short-term implied volatility has remained relatively low, averaging around 22% over the past year. Analysts say this is consistent with BTC’s largely range-bound price action over the last month.
Can the Shift in Sentiment Last?
Despite lingering caution, current derivatives conditions suggest support for a continuation of bitcoin’s rally. Demand for leveraged exposure remains strong, with short-dated options volatility smiles shifting from bearish positioning toward neutral levels. Additionally, seven-day futures contracts are trading at a 10% premium to spot prices, reflecting positive near-term expectations.
However, analysts warn that bitcoin consolidating near $95,000 may not be enough to fully cement the move from bearish to neutral sentiment. While call-side dominance has yet to clearly emerge in short-dated options, historical trends indicate that a failure to hold above $95,000 could quickly revive demand for downside protection and restore a put-heavy skew.
