Uncertainty surrounding ether's future price is causing options on the asset to fluctuate at much higher levels than bitcoin, analysts say.

In contrast, bitcoin's volatility has decreased more significantly, suggesting that derivatives traders see the bitcoin market trending toward stability.

Implied volatility (IV) is a measure used in the options market, representing the market's forecast of the future movement or price volatility of an asset or security.

According to The Block's data, ETH's IV did not decrease to the same extent as BTC during the current post-halving market correction. Bitcoin's volatility index fell from 72% at the time of the halving to a multi-month low of 55%. In contrast, the same metric for ETH saw a less dramatic drop, from 76% to its current value of 65%.

ETH volatility risk premium increases

As reported by Bitfinex Alpha this week, options traders' uncertainty about the medium-term price of ETH is reflected in the asset's volatility risk premium (VRP). The report outlined how the ETH options market is showing a less significant decrease in VRP than the bitcoin options market.

Bitfinex analysts highlight uncertain market conditions at the end of the month for the second-largest digital asset by market capitalization, due to the looming deadline for a Securities Commission decision and United States Exchange (SEC) for two spot ETH ETFs.

Bitfinex analysts added: “One possible reason why Ether's volatility premium fell less than bitcoin's is that the SEC's ETF decision on May 23, 2024 played a role as an additional uncertainty to ETH price.”

As reported by Bitfinex Alpha this week, options traders' uncertainty about the medium-term price of ether is reflected in the asset's volatility risk premium (VRP).

According to TradingView data, during the recent post-halving market correction, bitcoin's volatility risk premium (VRP) fell to 8%, while ether's VRP fell to 18%.

Ether options risk reversal remains negative

According to QCP Capital analysts, ether is not seeing the same positivity among options traders as bitcoin. Ether put options are more expensive than call options, which often suggests a bearish sentiment among investors.

“Ether options risk reversal remains negative at -4%, possibly due to concerns about the SEC not approving spot ETH ETFs for VanEck and Ark21 on the day,” QCP Capital analysts said. May 23 and 24”.

In contrast to this, Tuesday's QCP Capital report noted that bitcoin risk reversal has turned positive, with call options showing more expensive than put options. This suggests that there is a bullish sentiment among investors, as they are willing to pay more for options that benefit from bitcoin price increases compared to options that protect against price declines.

Source: https://tapchibitcoin.io/cac-nha-phan-tich-cho-biet-su-bien-dong-ngu-y-cua-quyen-chon-ether-van-tang-cao.html