- Options market data shows higher premiums for Bitcoin calls versus Ethereum calls across timeframes.
- Risk reversals indicate Bitcoin calls trade 4-5 volatility points above puts.
- The ETH/BTC ratio reached a 3-year low of 0.03 this week.
- Donald Trump‘s inaugural speech excluded any mention of cryptocurrency.
- Betting markets now show 38% odds of Trump announcing a strategic Bitcoin reserve, down from 50%.
Bitcoin Options Signal Stronger Bullish Sentiment Than Ethereum
Options traders on Deribit are displaying greater confidence in Bitcoin’s prospects compared to Ethereum, following Donald Trump’s inaugural address that omitted any reference to cryptocurrency policies.
Risk Reversals Show Bitcoin Dominance
According to data from Amberdata, Bitcoin call options are commanding higher premiums than Ethereum calls across multiple expiration dates. The risk reversal metric, which measures the implied volatility difference between calls and puts, reveals Bitcoin options trading at 4-5 volatility points above their respective puts.
Ethereum Losing Ground
The ETH/BTC ratio has declined to 0.03, marking its lowest point since 2021. This technical indicator suggests traders are positioning for continued Bitcoin outperformance relative to Ethereum in the derivatives market.
Political Expectations Shift
Despite previous speculation, Trump’s speech contained no mention of a strategic Bitcoin reserve. The GOP congressional priorities document also excluded any cryptocurrency-related initiatives. On the decentralized prediction platform Polymarket, the probability of Trump announcing a strategic Bitcoin reserve in his first 100 days has decreased from 50% to 38%.
Risk reversal indicators help traders gauge market sentiment by comparing options prices, with positive values suggesting bullish expectations among institutional investors and market makers.
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