By Nermeen Nabil Khear 
The Bybit report enlightens traders and enthusiasts on the trading performance of Bitcoin and Ethereum with information about futures, perpetual swaps, and options.
Though both BTC and ETH move the same way, their trend in the market seems to be different at the moment. Let’s look into this Bybit report and check the performance of these cryptocurrencies.
What’s Happening with BTC and ETH Futures?
Futures trading shows us where traders think the market is going. Right now, BTC futures contracts are concentrated on the December 2024 expiration. However, total open interest is still below a more large expiration event in November. This led us to realize that traders could still be skeptical and are likely to wait for more signals, indicating a bull run is on for traders.
$IBIT options day 1 so far:
The December 20th, 2024 expiry is seeing its highest volume in $65-strike calls.
With IBIT trading at $52.76, going to $65 reflects a spot bitcoin price of ~$114,339.
TLDR; the market is bullish that bitcoin’s price ends the year well over $100k. pic.twitter.com/YPGmtgiITb
— Joe Consorti
(@JoeConsorti) November 19, 2024
At least ETH’s futures demonstrate more robustness at this stage. While ETH perpetual swaps saw a major drop in open interest due to overleveraged traders getting liquidated, its futures contracts are seeing consistent positioning. This indicates that ETH traders might be slightly more optimistic—or at least less shaken—than their BTC counterparts.
Perpetual Swaps
Speaking of perpetual swaps, the funding rates (the cost of holding a position) have calmed down after a wild ride. Bybit has also shown a recent series of liquidations that cleared out over-leveraged long bets on ETH that have triggered the recent pullback of ETH spot price.
Nevertheless, the funding rate of BTC declined while its price remained rigid compared to other assets.
This “reset” in funding rates means that traders are no longer so confident in their bullish outlooks. But the funding rates haven’t turned negative, which means there’s still some cautious optimism in the air.
Funding rates are completely reset, and open interest is down 25%.
If it looks like a bull market shakeout and feels like a bull market shakeout — it’s probably a bull market shakeout.#Bitcoin & #Altcoins
— Jelle (@CryptoJelleNL) December 10, 2024
Options Trading
Options trading puts a very interesting picture. In the case of BTC, the options market seems to have a pretty decent distribution of buyers’ interest in both calls and puts. This implies that traders are waiting for the break out that will take BTC above the psychologically important $100K barrier.
However, ETH’s options market has a different distribution of that ratio, and the difference varies with the strike price. Over 90 of open interest is on call options, especially for the contracts that will expire in December 2024. Notably, the term structure of ETH is negatively sloped; this implies that short-term expectations of volatility are higher than long-term volatility. This is unusual and suggests that ETH traders expect more immediate price swings.
Call Options accounted for 64% of yesterday’s total option volume, the most since 2021
pic.twitter.com/alXEuRBqMY
— Barchart (@Barchart) November 26, 2024
Why the Divergence?
So why are BTC and ETH showing mixed signals? Part of it could be tied to how traders view their potential. BTC’s repeated failures to hold above $100K might have traders waiting for a more significant push. ETH, the pillar of DeFi might have a more direct application to explain its fluctuations.
ETH is becoming less correlated with BTC.
The 180-day BTC-ETH Pearson correlation is at a three-year low. A 10% rise in #Bitcoin could result in only a 3% gain for #Ethereum.
Just because BTC is strong doesn’t mean you should buy ETH. Each asset is now following its own path. pic.twitter.com/4Dn4QoInXo
— Ki Young Ju (@ki_young_ju) November 19, 2024
What Does This Mean for You?
When it comes to funding rates, open interest, and volatility, Bybit’s report shows essential indicators for traders. Recent liquidation events are the perfect example for those who decide to over-leverage themselves, especially in such markets.
For those who invested in BTC or ETH, at the moment it is simply waiting. BTC may well need a stimulus to rise over $100K soon, while ETH has the short-term variability that could be either a wealth or, depending on the position, a danger.
As down as Ethereum feels right now relative to what the rest of the market is doing, it’s actually >50% higher than where it was at this point of the cycle last bull market vs. Bitcoin.
The ETH/BTC ratio bottomed out last cycle 220 days post halving. We’re… pic.twitter.com/UrkNqtHbrx
— K A L E O (@CryptoKaleo) November 25, 2024
Conclusion
The Bybit report gives us a clear message: BTC and ETH are at different places in their trade cycles; BTC is more mature than ETH. We find that BTC’s market has a more conservative tone and is relatively stable, while ETH continues to experience short-term fluctuations.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.
The post Bybit Report: Mixed Signals on ETH vs. BTC appeared first on Altcoin Buzz.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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