As a seasoned crypto investor with several years of experience under my belt, I have witnessed the ebb and flow of market sentiment towards various digital assets. The latest Bybit-BlockScholes Crypto Derivatives Analytics Report has caught my attention, as it reveals a notable shift in investor sentiment between Ethereum (ETH) and Bitcoin (BTC).
A recent study uncovers a noticeable divide among investors regarding their preferences between Ethereum (ETH) and Bitcoin (BTC).
In their most recent collaboration with BlockScholes, Bybit – the world’s second-largest cryptocurrency exchange by trading volume – released an insightful report on crypto derivatives.
Based on the findings from the report, there’s a rising optimistic outlook among traders in the Ethereum market, as indicated by increasing trading activity and bullish signs across various markets including spot trading, futures, options, and perpetual contracts.
Ether’s confidence among investors is high due to the upcoming debut of the first U.S. Ether Spot Exchange-Traded Funds (ETFs). This positivity is evident in ETH‘s continued price instability compared to Bitcoin, even during recent market fluctuations and declines.
Study findings
As an analyst, I’ve observed an intriguing trend in the crypto markets lately. Despite the recent downturn, Ethereum futures have bounced back more swiftly than Bitcoin in terms of open interest. This rapid recovery implies a resilient market sentiment towards Ethereum and its potential future growth. Additionally, the surge in trading volumes for Ethereum perpetual contracts suggests that investors are taking substantial long positions, likely as part of well-planned strategies to capitalize on upcoming market developments.
In the latest cryptocurrency market downturn, there was a significant increase in trading activity for perpetual swaps as numerous investors liquidated their long-standing positions.
“ETH saw higher trading volumes, indicating that traders held larger long positions. This could be because they anticipated the start of an ETF for Ethereum.”
Another way to phrase this is: The ETH options market continues to exhibit significant volatility, with heightened activity due to pending ETF decisions. In comparison, the BTC options market tends to display more stable, defensive trading patterns.
Based on my analysis of the report, I’ve found that Ethereum (ETH) options exhibit a volatility premium of around 10 to 15 points compared to Bitcoin (BTC) across all maturities on the term structure. Moreover, Ethereum’s volatility smile skew, which refers to the difference in implied volatility between call and put options at various strike prices, has recovered more swiftly toward out-of-the-money (OTM) calls than Bitcoin’s.
The demand for buying ETH call options has been notably higher than the interest in selling ETH put options.
According to Eugene Cheung, the Head of Institutions at Bybit, recent data highlights Ethereum’s robustness and attractiveness as major regulatory decisions loom on the horizon. The investing community is clearly taking a positive stance in response to mounting market anticipation.
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2024-07-15 20:28