Futures Implied Yield (1-Month Tenor)
The futures implied yield metric indicates market expectations for price movements over a 1-month period. This forward-looking indicator helps traders assess potential returns on futures contracts relative to spot prices.
ATM Implied Volatility (1-Month Tenor)
At-the-money (ATM) implied volatility measures expected price fluctuations:
- Reflects market uncertainty
- Helps price options contracts
- Serves as a fear/greed indicator
Crypto Sentiment Index Analysis
Market sentiment drives price action in crypto markets. Our proprietary Senti-Meter Index tracks emotional extremes that often precede trend reversals.
BTC Sentiment Indicators
- Current reading: Neutral with bullish lean
- Recent shift from extreme fear territory
- Correlation with institutional inflows
ETH Sentiment Indicators
- Slightly more bearish than BTC
- Influenced by network upgrade uncertainty
- Showing gradual improvement since last quarter
Futures Market Dynamics
The term structure of futures yields reveals important information about market expectations and trader positioning.
BTC Annualized Yields
The yield curve shows:
- Front-end yields declining (-0.5% WoW)
- Long-end yields holding steady (+2.1% MoM)
- Moderate steepening since last measurement
Expert Insight: The curve steepening suggests near-term caution but long-term confidence in BTC's appreciation potential.
ETH Annualized Yields
Comparisons with BTC:
- Consistently 10-15bps lower across tenors
- Similar steep curve shape
- Higher variance in short-term yields
Market Note: ETH's yield discount to BTC reflects its higher beta nature and different investor base composition.
Perpetual Swap Funding Rates
Funding rates balance long/short demand in perpetual swap markets - crucial indicators of market positioning.
BTC Funding Rate Analysis
Current status:
- Turned positive (+0.0015% hourly)
- Rising demand for long exposure
- Still below historical averages
ETH Funding Rate Trends
Key observations:
- Remains negative (-0.0020% hourly)
- Showing recovery signs
- Typically lags BTC by 24-48 hours
Options Market Overview
The options market provides sophisticated insights through various volatility metrics.
BTC Options Metrics
SVI ATM Implied Volatility
Recent changes:
- Short-tenor vols dropped 5%
- Long-tenor vols rose 3%
- Term structure normalizing after event
25-Delta Risk Reversal
Skew characteristics:
- Persistent call-skew at long tenors
- Put protection demand easing
- Typical post-selloff pattern
ETH Options Metrics
SVI ATM Implied Volatility
Premium shifts:
- Short-term premia down 7%
- Long-term unchanged
- Higher volatility of volatility
25-Delta Risk Reversal
Current state:
- Strong oscillation in short-tenor skew
- Remains negatively skewed
- Larger magnitude than BTC
Exchange-Specific Volatility
Different exchanges show varying volatility patterns due to:
- Liquidity differences
- User demographics
- Market maker activity
BTC Volatility by Exchange (1-Month Tenor)
| Exchange | Volatility | Premium/Discount |
|---|---|---|
| A | 62% | +2% |
| B | 60% | Baseline |
| C | 58% | -2% |
ETH Volatility by Exchange (1-Month Tenor)
| Exchange | Volatility | Premium/Discount |
|---|---|---|
| X | 64% | +3% |
| Y | 61% | Baseline |
| Z | 59% | -2% |
Put-Call Skew Analysis
Skew patterns reveal relative demand for puts vs calls across different exchanges.
BTC Skew Characteristics
- More pronounced at smaller exchanges
- Varies by 5-8% across platforms
- Shows arbitrage opportunities
ETH Skew Patterns
- Generally higher than BTC
- More exchange variability
- Stronger put protection demand
Advanced Volatility Surfaces
Sophisticated traders monitor these specialized indicators:
Market Composite Volatility Surface
- Aggregates multiple data sources
- Filters exchange-specific noise
- Provides cleaner signals
Listed Expiry Volatility Smiles
- Shows term structure anomalies
- Highlights mispriced expiries
- Identifies calendar spread opportunities
Cross-Exchange Volatility Smiles
- Reveals arbitrage possibilities
- Shows liquidity fragmentation effects
- Helps optimize execution
Constant Maturity Volatility Smiles
- Normalized time comparison
- Better historical comparisons
- Cleaner pattern recognition
FAQs: Crypto Derivatives Market
What do futures implied yields indicate?
Implied yields show the market's expected return on futures contracts relative to spot prices, reflecting sentiment about future price movements.
Why is ATM implied volatility important?
ATM volatility serves as:
- A key options pricing input
- A fear/greed indicator
- A measure of expected price swings
How do funding rates affect traders?
Funding rates:
- Impact holding costs
- Signal market positioning extremes
- Can force liquidations at extremes
What causes volatility differences across exchanges?
Variations stem from:
- Liquidity pools
- Market maker presence
- User base trading styles
- Arbitrage constraints
👉 Discover advanced trading strategies to capitalize on these market inefficiencies.
How can traders use put-call skew?
Skew helps:
- Gauge protection demand
- Spot mispricings
- Structure relative value trades
Why monitor multiple volatility surfaces?
Different surfaces reveal:
- Various aspects of market structure
- Diverse trading opportunities
- Distinct risk factors
👉 Master volatility trading with our comprehensive derivatives guide.
Key Takeaways
- Futures curve steepening suggests bifurcated expectations
- Volatility term structure shows normalization
- Funding rates indicate recovering demand
- Exchange differences create arbitrage potential
- Advanced surfaces reveal nuanced opportunities