Cryptocurrency
Options Market Sees More Risk in Ether Than Bitcoin in Coming Months
As reported by Coindesk, “Ether will face more volatility than bitcoin over the next six months, according to how options have been priced in recent weeks. “The spread between the six-month, at-the-money implied volatility for ether (ETH) and bitcoin (BTC) has increased to a six-month high of 22 percent, notes crypto-derivatives analytics firm Skew. “The recent […]
As reported by Coindesk, “Ether will face more volatility than bitcoin over the next six months, according to how options have been priced in recent weeks.
“The spread between the six-month, at-the-money implied volatility for ether (ETH) and bitcoin (BTC) has increased to a six-month high of 22 percent, notes crypto-derivatives analytics firm Skew.
“The recent spike in the ETH-BTC six-month implied volatility spread shows investors are expecting bigger percentage moves in ether (in either direction) than in bitcoin over the next 180 days.
“The spread bottomed out at 4.7 percent at the end of October and has been on an upward trajectory ever since.
“Interestingly, ether has consistently witnessed bigger percentage moves than bitcoin over the last 3.5 months, validating the uptick in the implied volatility spread.
“While bitcoin dropped by 21 percent in the final two months of 2019, ether shed nearly 30 percent. This year it’s a different story: Ether is reporting 73 percent gains on a year-to-date basis compared to bitcoin’s 37 percent gains…”