Ethereum Outperforms Bitcoin Amid Rising Open Interest: Bybit x Block Scholes Report

Ethereum Outperforms Bitcoin Amid Rising Open Interest: Bybit x Block Scholes Report

Ethereum has outpaced Bitcoin over the past week, marking a notable shift in the cryptocurrency market’s bullish sentiment.


A recent report from Bybit, a global crypto exchange, and Block Scholes, a London-based research and analytics firm, highlights Ethereum's strong performance compared to Bitcoin. The report reveals that Ethereum's perpetual swaps have seen a consistent rise in open interest, while Bitcoin’s open interest has slowed following its retreat from the $100,000 highs it reached last week.


Ethereum Leads Market Performance

Ethereum's price surged more than Bitcoin during this period, with data showing ETH up by over 8% compared to Bitcoin's decline of 1.6%. This growth comes in the wake of the news that U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler will exit the agency in January 2025, which has fueled optimism throughout the cryptocurrency space.


Other cryptocurrencies, including XRP, Cardano, Stellar, and Polkadot, have also outperformed Bitcoin, with the anticipation of Gensler’s resignation further boosting market sentiment. The report indicates that many investors are hopeful that a change in SEC leadership could lead to a more favorable regulatory stance toward cryptocurrencies.


Ethereum Hits $3,682, Bitcoin Retreats

Ethereum reached a weekly high of $3,682 on November 28, while Bitcoin, after peaking at an all-time high of $99,531, retreated to $90,911. The dip in Bitcoin’s price from near $100K has led to a constrained volatility structure, with short-tenor options crossing below 60%. This reflects the pattern seen since the U.S. elections, with price declines amid lower realized volatility.


Rising Demand for Ethereum Options

While demand for short-term Bitcoin options has waned, Ethereum continues to see increased interest in its call options. Ethereum leads the market in both trading volumes and open interest, further highlighting the growing optimism around the asset.


The Bybit and Block Scholes report underscores a shift in market dynamics, with Ethereum emerging as a stronger performer amid increased investor confidence and favorable market conditions.


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