Role Reversal: Ethereum Defies Expectations With Lower Volatility Than Bitcoin

2023-5-22 18:20

Ethereum (ETH), the second-largest digital asset in the cryptocurrency sector, is currently captivating traders’ attention as volatility gauges indicate an intriguing shift in market dynamics. 

Contrary to the customary pattern, these indicators are suggesting that Ether may experience relatively smaller near-term price fluctuations compared to Bitcoin, according to Bloomberg.

This unexpected reversal has injected a fresh element of anticipation and curiosity among investors, who are now closely monitoring the evolving landscape of cryptocurrencies. 

Narrowing Gap Between Ethereum And Bitcoin Volatility

The T3 Ether Volatility Index, an innovative tool, lies at the core of this phenomenon. It has emerged as an indispensable barometer for assessing and foreseeing price volatility in the Ether market.

The data compiled by Bloomberg reveals that the difference in volatility between Ether and Bitcoin, as measured by the 180-day realized or historical volatility, is currently at its smallest since 2020. Furthermore, this difference is only marginally positive, indicating a remarkably close alignment between the volatility of Ether and Bitcoin.

 

Caroline Mauron, co-founder of crypto derivatives platform OrBit Markets, told the publication:

“Lower volatility typically helps institutional investors to allocate more capital to crypto, as it becomes cheaper to buy protection and manage exposures… the volatility spread compression may drive more exposure to Ether from long-term investors.”

Implications Of Ethereum Price Fluctuation

The changing flux of Ether’s volatility behavior have significant implications. Notably, the Bitcoin and Ether implied volatility indexes, which rely on options pricing, have experienced declines after reaching recent highs in March. 

However, Ether’s implied volatility has decreased at a faster pace. Additionally, a broader measurement of cross-asset fluctuations in global markets has also witnessed a decline.

The implications of Ether’s changing volatility behavior are multifaceted. The faster decline in Ether’s implied volatility suggests that market participants have become less uncertain or less anxious about the future price movements of Ether compared to Bitcoin. This could be influenced by various factors such as regulatory developments, market maturity, or growing investor confidence in Ether’s long-term potential.

Furthermore, the broader decrease in cross-asset swings indicates a potential reduction in risk aversion among investors, as they perceive a more stable and predictable market environment. This could impact investment decisions and trading strategies, as market participants may adjust their risk management approaches and allocation of resources based on the evolving volatility landscape.

The changing volatility of Ether, as reflected in the Bitcoin and Ether implied volatility indexes and the broader measure of cross-asset swings, highlight the evolving nature of the cryptocurrency market. 

-Featured image from Coinnounce

Similar to Notcoin - TapSwap on Solana Airdrops In 2024

origin »

Bitcoin (BTC) на Currencies.ru

$ 66915.17 (-0.25%)
Объем 24H $16.492b
Изменеия 24h: -0.37 %, 7d: 9.52 %
Cегодня L: $66856.94 - H: $67668.16
Капитализация $1318.253b Rank 1
Цена в час новости $ 26855.17 (149.17%)

bitcoin volatility ethereum indicators suggesting market these

Источник: newsbtc.com

bitcoin volatility → Результатов: 126


Bitcoin supply is dwindling, yet volatility will be the biggest benefactor

Key Takeaways Long-term holders are accumulating Bitcoin, with two-thirds of the supply stagnant for over a year Our Head of Research, Dan Ashmore, writes that liquidity on the demand side is also drying up, with order books thin and stablecoins fleeing exchanges This will kick up volatility in the short-term, leaving Bitcoin open to aggressive […] The post Bitcoin supply is dwindling, yet volatility will be the biggest benefactor appeared first on CoinJournal.

2023-4-26 14:51


Фото:

Bitcoin volatility rising as $4.2 billion options set to expire Friday

Key Takeaways Bitcoin volatility is the highest point since July 2022 Liquidity is extremely thin which is pushing volatility higher and accentuating price moves $4. 2 billion of options expire Friday, with bull set to profit following the recent surge up to $28,000 Yesterday, I wrote a piece looking at how the correlation between Bitcoin and […] The post Bitcoin volatility rising as $4.

2023-3-31 15:49


Bitcoin Volatility Plunging While OI on Binance Is Surging with GBTC Sellers Buying BTC

Trading around $34,500, Bitcoin’s price remains range-bound between $30k and $40k. The lack of any price action has volatility simply plunging to April levels. Amidst this low volatility, Bitcoin’s correlation with the S&P 500 has started to rise in recent weeks while the leading cryptocurrency’s correlation with commodities continues to fall.

2021-7-12 15:27


Bitcoin Market State: Investors Holding Steady Instead of Selling Large Volumes like 2018, But Volatility to Remain Under Pressure until Q3 End

The macro-environment also remains in favor of Bitcoin, for now, while the CBDCs aiming for “absolute control” will only drive the cryptocurrency adoption further. The post Bitcoin Market State: Investors Holding Steady Instead of Selling Large Volumes like 2018, But Volatility to Remain Under Pressure until Q3 End first appeared on BitcoinExchangeGuide.

2021-7-10 16:55


дальше еще 77 новостей →

Партнеры Currencies.ru

Реклама на Currencies.ru

Самое свежее на Currencies.ru

Whale Watch: Ethereum Fresh Buy Signal Sparks Speculation

The Ethereum market has been a whirlwind of activity in recent days. After a brutal price correction last week, the world’s second-largest cryptocurrency by market capitalization has staged a mini-rebound, leaving investors wondering if this is the start of a sustained bull run or a fleeting flicker before another dip.

Ethereum To See Fresh Move Soon? What Futures Data Says

Data shows the Ethereum Open Interest has been trading at relatively low levels recently. Here’s what this could mean for the asset’s price. Ethereum Open Interest Has Been Moving Sideways Since Its Plunge As explained by an analyst in a CryptoQuant Quicktake post, the ETH Open Interest has followed a similar trajectory as the price of the cryptocurrency recently.

Ethereum Fees Now Lowest Since January: Is It A Bottom Signal?

On-chain data shows that Ethereum transaction fees have dropped to their lowest level since January, a sign that a bottom could be close. Ethereum Transfer Fees Has Plunged As Network Has Gone Cold According to data from the on-chain analytics firm Santiment, Ethereum transaction fees have taken a notable hit recently.

These Are The Ethereum Altcoins Witnessing High Whale Interest

Here are the Ethereum-based altcoins that are currently witnessing a high amount of activity from the whales, according to on-chain data. These Ethereum Altcoins Are Seeing High Whale Transactions Right Now In a new post on X, the on-chain analytics firm Santiment has discussed how several Ethereum-based altcoins have been seeing notable whale activity recently.

Ethereum Breaks $2,900, But Watch Out For Futures Overheating

Ethereum has broken beyond the $2,900 level during the past day, but data shows the futures market may be starting to become overheated. Ethereum Has Now Broken Through The $2,900 Level While Bitcoin has slumped to an overall sideways trajectory recently, Ethereum appears to have decided to pick a path of its own, as the second largest asset in the sector has surged almost 4% over the past 24 hours.

Recovery Dim? Ethereum Faces Potential Slide Towards $2,000

Ethereum, the linchpin of the decentralized application ecosystem, finds itself navigating a precarious path this week. The cryptocurrency’s value, having breached the pivotal $2,250 support level, now teeters on the edge of a decisive crossroads, caught between the prospect of a resurgence and the looming threat of a more pronounced downturn.