Why should I compare BTC/USD, ETH/BTC and BTC/ETH?

Why should I compare BTC/USD, ETH/BTC and BTC/ETH?

Morgan   

In the last few days Bitcoin (BTC) price rallied within a hair of the $14,000 level and Ether (ETH) followed with a similarly strong performance but the altcoin failed to hold above the $400 physiological support.



BTC to eth

Although Ether price is below $400, data show traders are not worried about Friday’s options expiry. Investor optimism has been kept intact despite the recent decentralized finance (DeFi) lackluster performances.

$80 million worth of Ether options are set to expire this Friday, but there has never been a strong argument for October. For starters, this number pales in comparison with the figures for December and March $282 million.



Even when taking a more granular view, October options are somehow balanced between calls and puts. This data is a sign of an undecided market, which is neither bullish nor bearish when viewed in isolation.



As the data above shows, there is roughly the same amount of call (buy) options betting on prices up to $410, as there are put (sell) options eager for lower prices. The scenario gets even more balanced after including OKEx numbers, which favors put (sell) options by 2.5K ETH.

The main reason behind the interest in October options is Ethereum's upcoming ETH 2.0 upcoming staking launch. For investors willing to open leveraged bets for this event, the odds favor December to March 2021 for an outcome. This rationale is valid both for bulls and bears, therefore greatly diminishing investors appetite for short-term options.



BTC to eth

By analyzing December’s $200 million in open interest, one will obtain a better sense of how investors are positioning themselves for the upcoming Ethereum network upgrade. Bullish strategies are using this ‘event’ around 62% of these options.

BTC to eth


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