Bybit, the world’s second-largest cryptocurrency exchange by trading volume, has released a new crypto derivatives analytics report in collaboration with Block Scholes. The report highlights a significant milestone in the cryptocurrency market, with the total market capitalization exceeding $4 trillion for the first time. This surge is attributed to recent legislative advancements in the United States and increased investor enthusiasm across various digital assets.

Altcoins Gain Momentum

The report notes a notable shift in investor focus from Bitcoin (BTC) to altcoins. Following an initial surge in BTC, traders’ growing risk appetite began to extend to altcoins, leading to substantial gains in this sector. Ethereum (ETH ($3,990.00)) and Solana (SOL ($200.25)) were among the altcoins that broke significant barrier levels during this period. This widespread rally in altcoins contributed to a decrease in BTC dominance, which fell below 60% as investors diversified their portfolios across the digital asset spectrum.

Ethereum’s Bullish Trends

Ethereum has shown strong bullish trends, particularly in options trading. The report highlights that ETH options trading is heavily skewed towards bullish positions, with call options dominating both volume and open interest metrics. The volatility term structure has compressed to a narrow range of 64-65%, while call skew peaked at 11%, indicating strong directional conviction among institutional traders.

Additionally, ETH’s spot price has more than doubled since April, driven by consistent positive inflows to ETH Spot ETFs and rising corporate interest in building ETH treasuries. The funding rates for ETH have remained robust, reflecting the broader positive trend in the market.

For more detailed insights, the full report can be accessed here.

Why This Matters: Impact, Industry Trends & Expert Insights

The cryptocurrency market has surpassed a $4 trillion market capitalization, driven by regulatory advancements in the U.S. and a surge in altcoin investments.

Recent industry reports indicate that the market is being shaped by significant trends such as decentralized applications and the convergence of crypto with AI. This aligns with the current market dynamics where altcoins like Ethereum and Solana are experiencing substantial growth.

As per insights from CoinCentral, Ethereum’s bullish trend is largely driven by institutional demand and ETF inflows. This supports the ongoing shift in investor focus from Bitcoin to altcoins, contributing to the overall market expansion.

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