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Bitcoin News | via CoinTelegraph – Ether options metric surpasses Bitcoin by 32% | While Ethereum made history by passing Bitcoin on the options market, the price of the ETH futures contract went backwards. Ether (ETH) has passed Bitcoin (BTC) on the options market for the first time in history. This happened when the open interest (OI) of Deribit Ether options, worth $5.6 billion, was 32% higher than the OI of Bitcoin options, worth $4.6 billion.
OI is found by adding all the contracts from trades that have been opened and taking away the contracts from trades that have been closed. It is used as a sign to figure out how the market feels and how strong price trends are. Deribit is the biggest BTC and ETH options exchange in the world, with more than 90% of all trades happening there.
The data from the Deribit exchange showed that most ETH options are calls, with a ratio of 0.26 for calls to puts. As the Merge date gets closer, the Put/Call ratio for ETH has hit a new low for the year.
With a put option, the buyer has the right but not the obligation to sell the underlying asset at a set price on or before a certain date. Overall, a person who trades call options is bullish and a person who trades put options is bearish.
If the put/call ratio is greater than 0.7 or equal to 1, that means the market is bearish. On the other hand, if the put/call ratio is less than 0.7 and getting close to 0.5, that means a bullish trend is starting to form.
The upcoming Merge, which is set to happen in the third week of September, is being blamed for the recent rise in ETH OI on the options market, which is a sign that traders are bullish.
Even though ETH is becoming more popular on the options market, the quarterly contracts for ETH futures that are set to expire in December 2022 have gone into backwardation, which means that the futures price is now lower than the spot price. Monday, the spot and futures price of ether went up to -$8. This might seem like a bearish outlook, but after price backwardation in June, BTC went up by 15%.
Aside from the growing optimism about the upcoming proof-of-stake (PoS) change, analysts have also brought up the possibility of an airdrop in the event of a chain split. Galois Capital did a survey and found that 33.1 percent of people thought the upgrade would cause a hard fork, while 53.7 percent thought the network would change without any problems.
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