Bitcoin Traders Shift to Bullish Options Following Fed Meeting While Ether Lags
Recent developments in the cryptocurrency market indicate a bullish shift in Bitcoin (BTC) options following the Federal Reserve's meeting, while Ether (ETH) lags behind.
- BTC risk reversals show positive sentiment for bullish bets, reflecting increased investor interest in price gains.
- This marks a change from previous bearish sentiment where puts were more expensive than calls.
- Institutional traders executed significant trades via over-the-counter platforms like Paradigm.
- The Fed forecast includes two rate cuts this year and plans to slow balance sheet reduction.
- Jerome Powell downplayed inflation concerns related to tariffs, calling them transitory.
- Ripple's legal resolution likely boosted overall market sentiment.
Ether Options Show Cautious Sentiment
- Ether risk reversals remain biased towards puts, indicating ongoing cautious sentiment despite approaching technological upgrades.
- The upcoming Ethereum upgrade, Pectra, aims to enhance smart accounts, scaling, and validator UX, with a test network launched recently.
- Persistent demand for ether puts may also stem from traders hedging against risks in other altcoins.