Crypto Derivatives Signals During the November 2025 Selloff
Summary
This weekly report reviews BTC and ETH derivatives during a broad crypto selloff in November 2025. It describes falling spot prices, elevated implied volatility, and options smiles skewed toward puts, suggesting demand for downside protection. ETH showed especially high short-dated implied volatility and an inverted volatility term structure, while short-dated futures in both assets traded below spot, a pattern the report associates with bearish positioning.
The report also notes that funding signals were mixed: Deribit’s inverse BTC contract had persistently negative funding, while its linear contract showed some bullish positioning; ETH funding likewise appeared more positive than its options market. These comparisons highlight that futures, perpetual swaps, and options can convey different sentiment signals. The article provides market observations and chart headings, but the underlying charts and detailed measurements are not included in the text. The signals are a time-specific snapshot and do not establish that the selloff or elevated volatility would continue.
Key ideas
- BTC and ETH options showed elevated implied volatility and skew toward put protection during the selloff.
- ETH short-dated implied volatility rose sharply, with an inverted volatility term structure.
- Short-dated futures below spot indicated bearish pressure, more pronounced in BTC than ETH.
- Perpetual funding signals differed across contract types and from options-market sentiment.
- The report is descriptive and time-specific; its signals do not guarantee future price direction.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.