Right after the recent U.S. election, crypto players are diving headfirst into leveraged long positions on perpetuals and futures contracts. A report from Bybit and Block Scholes reveals that the crypto crowd is betting big, showing confidence that volatility’s taken a backseat. It’s like they’re saying, “Hold tight and double down,” because they think the market’s steadying up a bit. Trump’s win might be a spark, with traders eyeing a ripe time to jump in.
With Bitcoin (BTC) climbing past $77,000 and volumes swelling, traders see a green signal for some serious action. According to the report, the open interest in leveraged longs, which had dropped due to pre-election jitters, is back and stronger than ever. People are riding on BTC, hoping it will keep its momentum, even as the risk of the election drama fades. They’re chasing leverage, paying premiums just to stay in the game, pushing BTC futures and perpetuals close to all-time highs.
BTC Takes the Stage While ETH Lags Behind
BTC’s making all the noise, but ETH isn’t catching up as quickly. The report hints that while BTC’s ruling the futures and derivatives scene, the capital is mostly sticking there, with little rotation into ETH. It’s like the market’s saying, “BTC first, ETH maybe later.” The demand for BTC futures is surging, even as ETH sits with lower short-term volatility.
Trump’s ascent, the report notes, played a role in flattening BTC’s volatility term structure. BTC volatility’s now looking more like the long-term picture, with a solid footing under traders’ feet. So, with reduced swings, BTC options are seeing a surge in open interest, even as trading volumes cool down. Traders are eyeing potential moves, ready for the next big wave.
ETH’s Steeper Curve Shows Low Short-Term Fluctuations
ETH’s showing a steeper term structure, with lower short-term volatility. Trading volumes may be lower, but open interest is ticking upward, hinting at a future shake-up. The report calls it calm for now, yet signals are pointing to potential tremors ahead. ETH’s volatility might not be high right now, but this rise in open interest hints that some players are preparing for another round.
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