{"id":28993,"date":"2025-05-28T12:33:55","date_gmt":"2025-05-28T12:33:55","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=28993"},"modified":"2025-05-28T12:33:55","modified_gmt":"2025-05-28T12:33:55","slug":"ether-favored-over-bitcoin-by-big-money-here-are-3-clues-that-point-to-eth-bias-in-crypto-market","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=28993","title":{"rendered":"Ether Favored Over Bitcoin by Big Money, Here Are 3 Clues That Point to ETH Bias in Crypto Market"},"content":{"rendered":"
\n

The futures and options market, a proxy for big money, is increasingly backing ether ETH over bitcoin BTC in a major market shift.<\/p>\n

Bitcoin, the leading cryptocurrency by market capitalization, recently reached record highs of over $ 110,000. According to CoinDesk data, the cryptocurrency has gained over 16% this year, drawing strength from the macroeconomic factors and persistent inflows into the spot bitcoin exchange-traded funds.<\/p>\n

Meanwhile, ether has dropped 20% this year despite its parent blockchain, Ethereum, maintaining its pole position in the decentralized finance (DeFi) and tokenization markets. <\/p>\n

The performance gap, however, may be closed in the near term as the following indicator shows a growing bullish bias for ether.<\/p>\n

Options indicate bullish sentiment for ether<\/h4>\n

Options listed on Deribit show a stronger bullish positioning for ether relative to bitcoin.<\/p>\n

Options are derivative contracts that give the purchaser the right but not the obligation to buy the underlying asset at a predetermined price on or before a specific date. A call option gives the right to buy and represents a bullish bet on the market, while a put option provides protection against price drops.<\/p>\n

As of writing, both BTC and ETH’s 25-delta risk reversals, a measure of sentiment derived by examining the difference in implied volatility (demand) between calls and puts, were positive, reflecting a bias towards call options.<\/p>\n

However, ETH risk reversals were more expensive than BTC. In other words, traders were relatively more bullish on ether compared to bitcoin.<\/p>\n

\"ETH<\/p>\n

CME futures open interest<\/h4>\n

The notional open interest in CME bitcoin futures, which represents the dollar value of the number of active contracts, has risen by roughly 70% to over $17 billion since the early April crash, according to data source Velo.<\/p>\n

The growth, however, has stalled above $17 billion over the past seven days. The CME is considered a proxy for institutional activity.<\/p>\n

Meanwhile, ether’s open interest has jumped 186% to $3.15 billion since the early April crash. The growth has accelerated over the past two weeks.<\/p>\n

The diverging trends show institutions are increasingly leaning toward ether.<\/p>\n

\"ETH<\/p>\n

Futures premiums and perpetual funding rates<\/h4>\n

The bias for ETH is also evident from the relative richness of premiums in ether futures.<\/p>\n

As of the time of writing, one-month Ether futures boasted an annualized premium of 10.5%, the highest since January, according to Velo. Meanwhile, bitcoin futures premium was 8.74%.<\/p>\n

\"ETH<\/p>\n

Elevated premiums indicate optimism and strong buying interest, often signaling a bullish trend. Therefore, the relative richness of ether futures premium suggests traders are more bullish on ETH compared to BTC. After all, ether is still 84% short of record highs reached during the 2021 bull run.<\/p>\n

There is also a possibility that the BTC’s basis may have been held lower by cash and carry arbitrage (non-directional) traders.<\/p>\n

A similar divergence is observed on offshore exchanges, where annualized funding rates, representing the cost of holding long positions in ETH perpetual futures, has neared the 8% mark. Meanwhile, BTC’s funding rates hold below 5%.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The futures and options market, a proxy for big money, is increasingly backing ether ETH over bitcoin BTC in a major market shift. Bitcoin, the leading cryptocurrency by market capitalization, recently reached record highs of over $ 110,000. According to CoinDesk data, the cryptocurrency has gained over 16% this year, drawing strength from the macroeconomic […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-28993","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/28993","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=28993"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/28993\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=28993"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=28993"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=28993"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}