Current implied volatility values for Bitcoin and Ethereum options indicate expectations of a calm situation in the cryptocurrency market in the coming weeks. Deribit commercial director Luuk Striers told The Block about this.
The mentioned metric in relation to the first cryptocurrency has decreased significantly since mid-May.
QCP Capital analysts also noted signs of a sluggish market. They added that “implied volatility began to weaken following the approval of the ETH-ETF, despite prevailing catalysts.”
Experts warned that the “sleepy market could be offside.” Counting on this scenario, they are making bullish bets, especially on Ethereum. The impetus for changing the situation may be the start of trading by an exchange-traded fund based on it earlier than expected.
Striers noted that there are some bearish expectations for the next two weeks, which is reflected in the ratio of puts to calls.
The corresponding metric for Ethereum has been growing since mid-May on several derivatives platforms. The publication explained that this may be a consequence of hedging positions by some traders due to fears of postponing the launch of trading in products.
Let us remind you that from May 23 to June 2, the total Ethereum exchange balance decreased by 797,000 ETH ($3 billion).
Previously, the founder and CEO of DeFiance Capital, Arthur Cheong, named $4,500 as a benchmark for the asset even before the launch of ETH-ETF.
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