BitMEX, one of the most secure exchanges, today released its year-end research report, “The State of Crypto Perpetual Swaps in 2025,” outlining five key insights from what has been a turbulent year for the global crypto derivatives market. The report examines how structural stresses, liquidity shocks, and the collapse of once-reliable trading strategies will reshape perpetual swaps in 2025.
The report said the most significant event this year was the October 10-11 market crash that triggered an estimated $20 billion in liquidation cascades. BitMEX analysis shows that automatic deleveraging mechanisms across multiple exchanges have disrupted delta-neutral strategies, forcing professional market makers to reduce liquidity and leaving order books at their thinnest levels since 2022.
“2025 marks a turning point where market structure becomes more important than market direction,” said BitMEX CEO Stefan Lutz. “The events of October showed that even sophisticated and historically neutral strategies can fail when the currency risk engine is stressed, and that resilience now relies on transparent systems and disciplined risk management.”
The report also found that funding rate arbitrage, once considered a reliable source of passive yield, is becoming increasingly crowded. As exchange-native delta-neutral products expanded, funding rates compressed sharply, with yields falling toward 4% and often below prevailing U.S. Treasury rates by mid-year.
Beyond market mechanisms, the report highlights the growing trust gap between fair matching exchanges and so-called B-Book platforms. BitMEX researchers have observed multiple incidents in which profitable traders faced trade cancellations and account restrictions based on “abnormal trading” clauses, reaffirming the importance of understanding counterparty risk.
“Where a trader chooses to execute has become as important as the strategy itself,” Lutz said. “As derivatives markets mature, participants are seeking a venue that prioritizes fair matching, clear rules, and accountability, especially during times of market stress.”
The report also examines the rise of permanently decentralized exchanges and notes increased innovation as well as new vulnerabilities such as targeted liquidation attacks and oracle manipulation. At the same time, BitMEX recognizes that emerging product categories such as perpetual equity and funding rate trading are signs of the continued evolution of the derivatives industry. Earlier this week, the company launched Equity Perps, giving traders 24/7 access to 10 U.S. stocks and indexes.
Looking ahead, BitMEX concludes that the days of easy yield are over, but innovation in product design and market structure is accelerating. The company expects the convergence of crypto and traditional markets to continue, with increased use of derivatives to access global assets 24/7.
The full “State of Crypto Perpetual Swaps in 2025” report is available on the BitMEX Blog.
About BitMEX
BitMEX is the OG crypto derivatives exchange, providing professional crypto traders with a platform that meets their needs with low latency, deep crypto native liquidity, especially for BTC, and unparalleled reliability.
Since its founding, no cryptocurrencies have been lost to intrusions or hacks, and BitMEX users can trade with the peace of mind that their funds are safe and they have access to the products and tools they need to make money.
BitMEX was also one of the first exchanges to publish on-chain Proof of Reserves and Proof of Liabilities data. The exchange will continue to publish this data twice a week to ensure that customer funds are kept safe and segregated.
For more information, users can visit the BitMEX blog or www.bitmex.com and follow us on Discord, Telegram, and Twitter.
