Bitcoin, Ethereum has this new story for risk-averse investors

Bitcoin [BTC] and Ethereum [ETH] were victims of capitulation between May and June. The top two cryptocurrencies by market capitalization experienced a sharp decline in investor interest in the options and derivatives market during this period, especially as the LUNA collapse occurred.

In another twist, BTC and ETH seem to have regained investor confidence. According to the latest Glassnode report, the Bitcoin and Ethereum derivatives market has surged. You will also remember that BTC rose above $24,000 while ETH reached $1,800 in a market revival that could have contributed to the restoration.

Institutional input and careful treading

Reportedly, BTC and ETH have had more institutional capital pumped into their ecosystems. The leading on-chain data platform also noted that options traders have been making increasing buy calls and opening trading positions as the Ethereum merger approaches. The report said,

“This appears to be relatively sophisticated market positioning, and adds further evidence that institutional capital is being used for the maturing liquidity of futures and options markets.”

Until now, the BTC futures market had struggled to rise above the 350,000 BTC mark.

However, the latest news made it reach 538,000 BTC. Still, the current USD market cap ($12.4 billion) has not reached January levels when it was an obvious bull market.

This attitude has reflected that investors in the market have been wary despite a renewed interest.

For ETH it is a similar case. Glassnode revealed that the current trading position indicated that they were in for a relatively long period.

According to the report, the open positions of ETH options and futures traders indicated that they were in pole spots to take advantage of possible price gains amid the merger. Besides these increases in interest, what else has happened?

First time lucky

Interestingly, ETH has surpassed BTC for the first time in the same options market. Glassnode reported that ETH option open market interest valued at $6 billion moved above BTC’s $4.8 billion.

However, this milestone may not be a lucky feat for the coin as there were signs that ETH could take over BTC. The excitement surrounding the merger has contributed to this remarkable landmark as traders believe a price rally is all but guaranteed in September.

In addition, ETH had reached new highs over exchange receives addresses and addresses holder 1000+ ETH.

Similarly, the coin has seen an increase of 2.59% in the last 24 hours, which could mean that HODLers were highly anticipating the merger result. For BTC, there has been a small drop below $24,000 per CoinMarketCap.

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