Bybit & Block Scholes Shock Report: BTC/ETH Options Show Bearish Signals Contradicting Sky-High Funding Rates

Crypto markets are flashing mixed signals—and someone’s lying. Despite roaring perpetual funding rates, Bitcoin and Ethereum options traders are placing bets like a recession’s coming. Here’s why the smart money’s hedging against the crowd.

The Great Derivatives Divide

Perps traders keep piling into leveraged longs, but options desks tell a darker story. Put/call skews haven’t looked this defensive since the FTX collapse. Either retail’s about to get liquidated again, or Wall Street’s algo-traders missed the memo.

When the Machines Disagree

Funding rates scream ‘moon mission’ while options volatility smiles like a Cheshire cat. This isn’t market equilibrium—it’s a high-stakes poker game where the quants bluff with Greek letters instead of chips.

Remember: in crypto, the ‘efficient market hypothesis’ is just that—a hypothesis. Especially when 20-something VC-backed ‘market makers’ control half the order book. Place your bets accordingly.