Catenaa, Wednesday, February 25, 2026- Bybit has released its latest Crypto Derivatives Analytics report with Block Scholes, showing the most extreme derivatives positioning since the November 2022 FTX collapse following last week’s BTC flash crash to $60,000.
The report highlights a surge in volatility, with short-dated BTC and ETH implied volatility reaching levels last seen during the FTX crisis. Seven-day BTC volatility exceeded 100% as demand for downside protection spiked.
Bitcoin has fallen roughly 50% from its October 2025 all-time high, triggering proportional outflows across the crypto market. BTC dominance remained stable, indicating capital exited the broader market evenly rather than flowing into Bitcoin as a safe haven.
Altcoins were hit hard.
ETH dropped below $2,000, SOL fell over 70% from recent highs, and other large-cap tokens including XRP and BNB declined more than 60%.
Funding rates across major altcoins turned decisively negative, with SOL’s seven-day average funding rate falling to -0.04%, its lowest since October 2025. Short traders paid premiums to maintain bearish positions.
Bybit analysts noted that despite macroeconomic factors, sentiment in crypto markets remains in extreme fear.
The derivatives market shows heightened risk aversion, making near-term rebounds challenging for major tokens. BTC briefly dropped to $60,000 on February 5 before recovering above $70,000, but as of February 13, it struggled to maintain $66,000.
The Bybit x Block Scholes report provides in-depth analysis of spot, futures, and options markets, detailing how the latest volatility and positioning may influence trading strategies and risk management across the sector.
