DUBAI, UAE, Feb. 27, 2026 — , the world’s second-largest cryptocurrency exchange by trading volume, has published its newest , examining recent volatility, positioning, and sentiment throughout Bitcoin and Ethereum derivatives markets.
The report outlines how Bitcoin exited an extended period of low volatility after dropping briefly to $62,000, then staging a rapid recovery toward $68,000. Although spot prices have recouped most of their losses, derivatives markets persist in showing wariness.
Key findings:
- Bitcoin’s realized volatility increased dramatically following several weeks of consolidation.
- Options markets aggressively priced in downside risk during the sell-off but failed to reprice upward during the rebound.
- One-week at-the-money implied volatility rose to approximately 60%, causing the front end of the volatility curve to become slightly inverted.
- Put skew has moderated from extreme levels but continues to favor downside protection.
- Perpetual futures open interest has kept falling, suggesting restrained demand for leveraged positions.
“The $70,000 psychological barrier has frustrated Bitcoin bulls throughout much of this month, putting the world’s oldest and largest cryptocurrency on track for its fifth straight monthly decline,” stated Han Tan, Chief market analyst at Bybit Learn. “Nevertheless, with crypto’s fundamentals staying supportive, the present confidence crisis could eventually pave the way for a compelling bullish story to surface. Capital flows might reverse when macroeconomic clarity improves, especially regarding Federal Reserve policy or U.S. trade policy.”
The report indicates that even with the recovery in spot prices, derivatives markets stay positioned defensively. Short-term options keep showing demand for hedging against further downside, while volatility levels during the rebound stay markedly below those witnessed at the sell-off’s peak.
Broader metrics strengthen the cautious perspective. Spot Bitcoin ETFs have seen net outflows for four straight months, setting Bitcoin on pace for its fifth consecutive monthly drop—a pattern last seen during the bear market that followed the 2018 ICO cycle. Ethereum displays a comparable situation, with spot Ether ETFs approaching a fourth month of net outflows since their July 2024 debut. Feeble retail sentiment and waning leverage further highlight the absence of strong conviction supporting the recent price bounce.
The can be downloaded.
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About Bybit
Bybit ranks as the world’s second-largest cryptocurrency exchange by trading volume, serving a worldwide community exceeding 80 million users. Established in 2018, Bybit is reshaping openness in the decentralized realm by building a simpler, more open, and equitable ecosystem for all. With a firm emphasis on Web3, Bybit forms strategic partnerships with top blockchain protocols to deliver solid infrastructure and fuel on-chain innovation. Known for its secure custody, varied marketplaces, user-friendly experience, and sophisticated blockchain tools, Bybit narrows the divide between TradFi and DeFi, enabling builders, creators, and enthusiasts to tap the full power of Web3. Explore the future of decentralized finance at .
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