As a seasoned analyst with years of experience navigating the tumultuous waters of the cryptocurrency market, I find myself intrigued by this latest report from Bybit and Block Scholes. The mixed signals for Ethereum (ETH) and Bitcoin (BTC) are reminiscent of a game of chess, where one must be constantly vigilant and adaptive to shifting strategies.
According to a recent report by derivatives market analysts, Bybit and Block Scholes, the signals for both Ethereum and Bitcoin are showing some inconsistencies.
The analysis reveals that Ethereum’s (ETH) ongoing interest in perpetual contracts has decreased significantly, largely because of the liquidation of excessively leveraged long positions. These positions had built up during a time of positive sentiment, but were subsequently adjusted when ETH’s spot prices dropped, as suggested by the report that was distributed to crypto.news.
Additionally, the report points out that while ETH futures contracts haven’t shown as significant a drop in active positions as ETH perpetual swap contracts during a temporary halt in bullish market trends, there’s been an increase in holdings for both Bitcoin (BTC) and Ethereum (ETH).
Even though there’s been an increase, the total number of open positions has not fully rebounded since the expiration of around $20 million in contracts at the end of November 2024. This suggests that traders who had November-expiring contracts have not yet resumed their trading volume to the same extent. However, BTC perpetual positions have managed to stay consistent, even after a dip following a peak above $100,000.
In simpler terms, perpetual swaps represent a financial agreement where individuals can predict an asset’s value change without actually possessing it. These contracts are popular in cryptocurrency trading, though if the asset’s price drops significantly, it could lead to forced sales for leveraged traders. This, in turn, may decrease market activity.
ETH beats BTC in options, driven by volatility
The report reveals that Ethereum continues to outperform Bitcoin in options open interest, particularly as end-of-year expirations approach. However, trading volumes have decreased, reflecting a general sense of caution in the market.
For Ethereum (ETH), the structure of option prices indicates higher actual volatility than anticipated, suggesting a disparity in feelings compared to Bitcoin (BTC). In contrast, the price structure of Bitcoin options is relatively flat, indicating that expectations for future volatility are closer to current levels.
Read More
- PYTH PREDICTION. PYTH cryptocurrency
- The Final ‘Gladiator II’ Trailer Has Arrived
- Solana L2 Sonic includes TikTok users in airdrop
- IMX PREDICTION. IMX cryptocurrency
- DC’s ‘Clayface’ Movie From Mike Flanagan Lands 2026 Release
- ‘Fast and Furious’ Star Paul Walker Remembered 11 Years After His Death
- Aamir Khan says India would go ‘ballistic’ if Laapataa Ladies wins Oscars; ‘We have been dying to…’
- Maluma Enters His Loverboy Era With New Single “Cosas Pendientes”
- XRP price slips as RLUSD market cap hits $53m, liquidations rise
- Crypto VC funding roundup: Riot snags over $594m, BVNK raises $50m
2024-12-12 18:14