Experts Highlight Key Data Point for Ethereum (ETH): What Analysts are Watching Closely
- Analysts have noted an uncertainty regarding Ethereum’s future price, comparing the volatility revealed by options to Bitcoin.
- Bitcoin’s implied volatility saw a more dramatic drop, suggesting derivative traders are leaning towards stability.
- Implied volatility (IV) is a measure used in the options market that represents market predictions of a security or asset’s potential future movement or price fluctuations.
Analysts have highlighted a notable difference in the volatility of Ethereum and Bitcoin, suggesting a shift in trader sentiment towards stability. This article delves into the implications of this trend for the crypto market.
Ethereum’s High Volatility Reflects Risk Premium
According to this week’s Bitfinex Alpha report, options traders’ uncertainty regarding Ethereum’s medium-term price is reflected in the asset’s volatility risk premium (VRP). The report summarised that the ETH options market showed a lower VRP compared to Bitcoin options. Bitfinex analysts drew attention to uncertain market conditions for the second-largest digital asset by market value, due to the upcoming deadline for the U.S. Securities and Exchange Commission’s (SEC) decision on two spot Ether ETFs. They added, “A possible reason for the ETH volatility risk premium falling less than ... Read the full article for FREE at COINOTAG!
