On March 24th, Bybit, a global derivatives trading platform, released new functionality that expands its derivative trading capabilities. Most notably, the platform is adding Tether (USDT) perpetual contracts to its crypto-backed derivative product offerings, creating new ways for investors to explore crypto markets.  

The announcement came from CEO Ben Zhou, who issued the release on a CoinTelegraph AMA, and it comes as crypto and traditional markets are enduring a unique period of volatility in response to the COVID-19 pandemic sweeping the globe. 

The new functionality means that traders can simultaneously establish and maintain long and short positions with unique leverages that can minimize exposure to volatility during these especially turbulent times. 

Bybit’s USDT perpetual contracts will mimic the underlying spot market, while still offering increased leverage on contracts that, like other Bybit products, do not come with an expiration date. 

Alongside the introduction of USDT perpetual contracts, Bybit announced several other new features that enhance the trading experience for derivative contracts. Specifically, Bybit users can now more quickly open and close option contracts, which is a critical feature during market volatility. 

In addition, several functionally aesthetic changes, like the ability to change positions directly from charts, a new dark mode UI, and an upgraded frontend architecture to reduce lag, will collectively enhance the user experience. 

According to Zhou’s AMA, these features will be available starting tomorrow.

Investors Respond to Turbulent Markets 

March 2020 has been an incredibly volatile time for crypto assets, even by the turbulent standards that typically define the crypto space. Now several weeks into the global COVID-19 crisis, it’s clear that the economy is, at best, heading for a recession. Investors, both in traditional and crypto markets, are predictably reacting erratically. Most notably, in early March, Bitcoin endured a flash crash that pushed its price below $4,000 for the first time since December 2018. However, by the time Bybit announced its new functionality on March 24th, markets had mostly recovered, pushing the price of Bitcoin back toward $7,000, according to CoinMarketCap. 

This rapid fluctuation is likely a response to moves by the US Federal Reserve and other governments around the world to shore up their economics. This week, the US Federal Reserve announced a comprehensive quantitative easing policy that includes extensive buying of corporate bonds, mortgage-backed securities, and a litany of business loans.

Ultimately, these efforts are meant to solve short-term problems caused by the economic downturn resulting from COVID-19 response plans. However, in the long-term, they could cause inflation to rise. In response, investors are looking to gold and cryptocurrencies as an intriguing asset class during these turbulent times. 

Of course, as recovery from COVID-19 is still in its early stages, the investment landscape is still far from settled. Traders should expect continued volatility across all financial markets, which only increases the impetus for better derivatives trading. 

In this way, Bybit’s expanded functionality arrives not a day too soon, as crypto traders look to hedge their investments to capitalize on this moment without risking everything.