Bybit X Block Scholes Report: US government shutdown has limited impact on crypto but options market remains cautious

Bybit, the world’s second-largest cryptocurrency exchange by trading volume, has released its latest Bybit x Block Scholes Crypto Derivatives Analytics Report in collaboration with Block Scholes. The latest edition highlights limited impact of the ongoing US government shutdown on digital assets, renewed caution in the options market, and growing momentum for privacy tokens such as Zcash (ZEC).

• Limited Impact from U.S. Shutdown: Bitcoin and Ethereum quickly rebounded from late-September liquidations, with BTC trading above $118K and ETH at $4,400.
• Options Market Cautious: BTC and ETH volatility remains suppressed, but options pricing continues to favor puts, reflecting defensive positioning.
• Privacy Tokens Outperform: Zcash (ZEC) nearly doubled, fueled by new integrations and rising concerns over global surveillance.

The report notes that despite macroeconomic uncertainty, crypto assets have shown resilience in spot markets. Following September’s liquidation-driven correction, Bitcoin and Ethereum both staged recoveries, supported by stabilized trading flows.

Bitcoin’s implied volatility collapsed to levels not seen since mid-2023, reflecting subdued realized volatility. However, options markets remain defensive, with long-dated tenors continuing to price in downside risk through put-skewed volatility smiles.

Ethereum options also reveal a risk-averse posture. Volumes surged during ETH’s September dip, with positioning heavily favoring puts. Spot ETF outflows further underlined market caution, while implied volatility continued to trend lower throughout the month.

Privacy-focused assets, particularly Zcash, stood out recently. ZEC nearly doubled in value, bolstered by the launch of Zashi CrossPay, its integration with THORSwap, and heightened global debate over digital surveillance. Its strong performance outpaced other leading privacy tokens.