Bybit, the world’s second-largest cryptocurrency exchange by trading volume, has released its latest Crypto Derivatives Analytics report in collaboration with Block Scholes, highlighting what it describes as the most extreme derivatives positioning since the November 2022 FTX collapse, following Bitcoin’s (BTC) recent flash crash.
According to the report shared with Finbold on February 13, BTC briefly fell to $60,000 on Thursday, February 5, before rebounding above $70,000 the following day. As of February 13, Bitcoin was struggling to hold the $66,000 level.
Volatility spikes and funding turns negative
The report notes that short-dated implied volatility for both BTC and Ethereum (ETH) surged to levels last seen during the FTX collapse. Seven-day BTC implied volatility climbed above 100% as demand for downside protection reached multi-year highs.
Bitcoin has declined roughly 50% from its October 2025 all-time high, a move that the report says has led to proportional capital outflows across the broader crypto market. Unlike previous downturns, BTC dominance has remained relatively stable, rather than rising as a perceived safe haven. Altcoin dominance has fallen from around 36% in October to approximately 30%.
Altcoins were also hit during the selloff. ETH dropped below $2,000, while SOL fell more than 70% from recent highs. Large-cap tokens, including ETH, XRP, and BNB, are down more than 60% from their peaks.
Funding rates across major altcoins turned decisively negative. Solana’s (SOL) seven-day average funding rate fell to -0.04%, its lowest level since the October 10, 2025, liquidation event, with data indicating that short traders were paying premiums to maintain bearish positions.
“Cryptos have largely shrugged off macro events, as sentiment gauges continue to wallow in ‘extreme fear’,” said Han Tan, Chief market analyst at Bybit Learn. “With crypto derivatives recently displaying its most extreme positioning since 2022, it’s likely a gargantuan ask for major tokens to stage a sustained near-term rebound in this present environment.””
The full Bybit x Block Scholes report covers spot, futures, and options markets in greater detail and is available for download.
Featured image via Shuttertsock.
