Bitcoin and Ether Options Indicate Calm Market with Potential Bullish Move for Ether

• Implied volatility for bitcoin and ether options suggests calm market expectations.
• Deribit Volatility Index shows significant drop in bitcoin implied volatility since mid-May.
• QCP Capital analysts note sluggish market post-spot ether ETF approval.
• Traders buying puts to hedge against potential downside in ether price.
• Ether put-call ratio rising since mid-May, indicating bearish sentiment.
• Traders may be preparing for potential downsides if spot ether ETF launch is delayed.

Summary :
Analysts suggest that the current levels of implied volatility for bitcoin and ether options indicate a relatively calm market in the coming weeks. The implied volatility rank and percentile for both cryptocurrencies are at mid-levels, suggesting that traders do not expect significant price movement. The Deribit Volatility Index shows a significant drop in implied volatility for bitcoin since mid-May. QCP Capital analysts also note the decline in implied volatility after the approval of spot ether exchange-traded funds (ETFs), despite prevailing catalysts. They believe that a potential bullish move for ether could occur if spot ether ETFs start trading earlier than expected in June. Additionally, derivatives indicators show that traders are purchasing puts to hedge against potential downside in ether's price. The put-call skew for ether options has turned negative, indicating bearish expectations for the next two weeks. The rising put-call ratio suggests that more traders are buying put options relative to call options, which are typically purchased when anticipating a decline in asset price. This increase in the put-call ratio follows the approval, but not the launch, of spot ether ETFs by the SEC, possibly indicating traders' preparation for potential delays in the launch of these financial products on exchanges.

Sources :

- TheBlock