• Investors are more bullish on Bitcoin than they are on Ether (ETH).
• This could mean downside for the ETH/BTC exchange rate over the next few weeks and months.
• Options market gauges indicate that investors currently have a modestly negative bias on ETH.
Options Markets More Bullish on Bitcoin Than Ethereum
Investors are more bullish on Bitcoin than they are on Ether (ETH) over the next few months, according to various option market gauges of sentiment provided by crypto analytics website The Block. This could mean downside for the ETH/BTC exchange rate over the next few weeks and months.
25% Delta Skew of Bitcoin Options
The widely followed 25% delta skew of Bitcoin options expiring in 180 days was 1.32 on the 5th of February, not too far below recent one-year highs hit last month in the 3.3 area. The 25% delta skew of Bitcoin options expiring in 7, 30, 60, 90 days were all a little lower, but still above zero, hence indicating that the market has a modestly positive bias. A 25% delta options skew above 0 suggests that desks are charging more for equivalent call options versus puts – implying higher demand for calls versus puts which can be interpreted as a bullish sign as investors are more eager to secure protection against (or bet on) a rise in prices.
25% Delta Skew of Ether Options
The 25% delta skew of Ether options expiring in 180 days was -0.3 on the 5th of February, while the 25% delta skew of Ether options expiring in 7, 30, 60, 90 days were all a little lower at between -0.8 and -1.5; thus indicating that investors currently have a modestly negative bias on ETH.
Put/Call Ratio Also Concerning For Ethereum Bulls
Open Interest Put/Call Ratio
The ratio between open interest of Bitcoin put and call options was 0.39 on 4th February 2021; close to its lowest level in two years – suggesting that investors favor owning call option (bets on price rising) over put option (bets or price dropping). While Ethereum’s Open Interest Put/Call ratio was last lower at 027; it remains substantially above its recent lows hit at beginning October 2020 around 020 – hence disappointing ether bulls who would like to see this ratio decline further into bearish territory..
Overall, these data points suggest that traders may expect some downwards pressure when it comes to ETH/BTC exchange rate; with bitcoin being favored by investors over ether tokens based off current market sentiment gauged from option markets