Americas Crypto Market Update: Bybit Security Breach Fails to Disrupt Trading, Investors Focus on SOL ETF

Bitcoin and ether, the top two digital assets by market capitalization, have maintained their recent trading ranges despite the $1.5 billion security breach at Bybit, a leading cryptocurrency exchange, two days ago. The perpetual funding rates for both assets are positive, indicating a preference for long positions that benefit from price increases. Deribit's bitcoin options trading data reveals a bullish bias for call options across all time frames, while ether options show a downside bias into March, although this bias has been present since before the security breach. Meanwhile, the 30-day bitcoin implied volatility index from Volmex Finance has dropped to an annualized 48.45%, its lowest level since July, according to TradingView. The implied volatility of ether has also reversed its minor weekend spike from 67% to 70%. This calmness in the market is seen as a sign of maturity by QCP Capital, which notes that the crypto landscape has strengthened since the FTX collapse in 2022, particularly in the crypto credit market. The crypto community is reassured by Bybit's ability to manage over $6 billion in withdrawals following the breach and its subsequent replenishment of ETH reserves. All eyes are now on Solana's SOL, as Franklin Templeton has submitted a proposal for a spot SOL ETF to the SEC. Additionally, 11.2 million SOL (2.3% of the total supply) from the FTX estate are set to be unlocked on March 1, which could lead to market volatility and has already increased volume in SOL put options on Deribit. President Donald Trump's decision to audit gold reserves at Fort Knox has also sparked interest in the crypto community, with some seeing it as a potential boost to Bitcoin's case as a digital reserve asset. In traditional markets, the yen continues to gain against the US dollar and growth-sensitive currencies like the Australian dollar, prompting caution among risk asset bulls.