Bybit Releases New Volatility Report
Dubai, United Arab Emirates, Oct. 24, 2025 – Bybit, recognized as the second-largest cryptocurrency exchange globally based on trading volume, has unveiled its latest findings in a report focused on market volatility.
The report, titled “Bybit x Block Scholes September Volatility Report,” delves into a noticeable increase in volatility within the crypto market, primarily driven by Bitcoin (BTC) and Ethereum (ETH). This follows a stretch of relatively stable price movements.
Main Highlights
- Mid-October saw a surge in BTC’s implied volatility due to a $19 billion liquidation event, marking the largest in the history of crypto.
- This incident represented BTC’s first term structure reversal since April 2025, occurring in the wake of rising US-China trade tensions.
- At one point, BTC and ETH’s prices dipped to $105,000 and $3,700, respectively, before recovering slightly.
- There’s a growing bearish sentiment among options traders, indicated by a 13% volatility premium on short-term BTC puts compared to calls.
- Open interest in perpetual futures has plummeted, reflecting a broader market deleveraging.
The resurgence in volatility has been linked to developments in the macroeconomic arena, especially the renewal of trade conflicts between the US and China. Following new export restrictions on rare earth minerals imposed by China, US President Donald Trump announced intentions to enact 100% tariffs on Chinese imports. This announcement, made after conventional markets closed, played a role in the steep decline of crypto assets over the weekend.
According to Bybit and Block Scholes, the recent reversal in BTC volatility—first observed since April 2025—indicates a rise in short-term uncertainty. The options market is exhibiting strong demand for protective measures against potential downturns, while there’s been a notable uptick in realized volatility.
Although volatility has retreated since April 2025, ongoing macroeconomic uncertainty lingers. Interestingly, BTC’s implied volatility had dropped to 25% on September 19, 2025—one of its lowest points this year—before the recent spike in October.
The report draws parallels between the current volatility upswing and a similar spike in October 2023, noting a shared pattern of long periods of stability followed by sharp increases. Of course, the triggers are different; the 2023 spike was associated with optimism surrounding spot Bitcoin ETFs, while the 2025 surge correlates more with macroeconomic pressures and risk aversion.
Bybit’s report concludes that volatility remains a pivotal aspect of the crypto markets, capable of reemerging unexpectedly after extended periods of calm. Furthermore, it suggests that volatility-driven techniques—like straddles—could provide traders with opportunities to capitalize on significant price movements, irrespective of the direction.
The full analysis is available in the Bybit x Block Scholes September 2025 Volatility Report.
About Bybit
Bybit is the world’s second-largest cryptocurrency exchange by trading volume, catering to over 70 million users globally. Established in 2018, Bybit aims to foster transparency in a decentralized environment by creating a more accessible and equitable ecosystem. Its initiatives are geared toward Web3, forging strategic partnerships with leading blockchain protocols to enhance infrastructure and spark on-chain innovation. Renowned for its secure storage solutions, diverse marketplace, and user-friendly interface, Bybit bridges traditional finance with decentralized finance, supporting builders, creators, and enthusiasts in harnessing the full potential of Web3.
