The cryptocurrency market has maintained a bullish tone over the past week, as Ethereum (ETH) has outperformed Bitcoin (BTC), per a joint report by crypto exchange Bybit and London-based analytics firm Block Scholes.
A substantial difference in performance is apparent between the top two cryptocurrencies, the report finds. Much evidence points to an increase in market activity and trader confidence by ether through the rise in the open interest in the perpetual swaps. However, unlike Bitcoin’s open interest, which slowed after hitting an all-time high of $99,531 last week to $90,911.
Ethereum Leads as Bitcoin Faces Decline Amid Market Shifts
While ETH’s price increased more than 8 percent on a weekly basis, pushing beyond $3,682 on November 28th, Bitcoin lost 1.6 percent across the same period. Despite BTC still being the flagship, this disparity has brought the spotlight on Ethereum’s growing market leadership.
News of U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler’s planned resignation from January 20, 2025, has buoyed the broader cryptocurrency market. This development has also fueled optimism across the sector, as various altcoins that include XRP, Cardano, Stellar, and Polkadot have also outperformed equally during this period.
“This trend reflects investor optimism, with many anticipating a shift in the SEC’s leadership by January 25, 2025, which could bring a more favorable stance toward cryptocurrencies,” the report reads in part.
As Bitcoin dives away from the $100K summit, it’s well known that narrow money volatility structures intailed suppressed options in the short term, and the figure went down to under 60%. This is in line with a trend since the U.S. election, in which price moves have been backed by lower realized volatility.
While short-term BTC option demand subsides, there’s been no change in open interest (OI) for calls and puts. While still chugging along, Ethereum surpasses the altcoins in volumes and opens interest in call options.
Its strong performance is a testament to the resilience of the Ethereum and its increasing investor confidence as the market would fluctuate. Ethereum’s open interest and price momentum surge may suggest a changing order of things in the cryptocurrency space, where traders are behaving more like the Ethereum space has a brighter upside, although admittedly it can be a classic high-fidelity prediction at times.
The report from Bybit and Block Scholes presents a snapshot of where the market stands today, where Ethereum has risen as an important participant in the crypto space. The ever-changing crypto market was again in focus as investors continued to consider Bitcoin and Ethereum in light of regulatory developments and market dynamics.
