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Join WhatsApp channelEthereum Outshines Bitcoin Amid Bullish Market Trends
Ethereum (ETH) has demonstrated stronger performance than Bitcoin (BTC) over the past week, signaling bullish sentiment across the cryptocurrency market. A joint report from Bybit, the world’s second-largest crypto exchange by trading volume, and Block Scholes, a London-based analytics firm, underscores Ethereum’s remarkable rise in open interest for derivatives, outpacing Bitcoin in several key metrics.
Perpetual Swaps and Open Interest Trends
The report reveals a steady increase in open interest for Ethereum perpetual swaps, contrasting with Bitcoin’s slowdown following its decline from a record high of $99,531. Ethereum surged 8% this week, while Bitcoin dipped 1.6%.
This shift in market dynamics coincides with news of U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler’s planned departure in January 2025, sparking optimism among crypto investors. The anticipated leadership change is expected to usher in a more favorable regulatory stance toward digital assets.
Broader Crypto Market Gains
Altcoins such as XRP, Cardano (ADA), Stellar (XLM), and Polkadot (DOT) also recorded gains during this period. The report notes, “This trend reflects investor optimism, with many anticipating a shift in the SEC’s leadership by January 25, 2025.”
Ethereum reached a weekly high of $3,682 on November 28, while Bitcoin retreated to $90,911. The market’s reduced realized volatility has constrained BTC’s money volatility structure, with short-tenor options dipping below 60%.
Divergent Trends in Options Markets
Bitcoin’s options market reflects subdued demand, with both calls and puts showing little change in open interest. In contrast, Ethereum’s options market has seen a surge in call options, further boosting its trading volumes and positioning ETH as a leader in market activity.
Looking Ahead
The report highlights a pivotal moment for cryptocurrencies, driven by regulatory shifts and investor sentiment. Ethereum’s strong performance and rising open interest signal its growing dominance in a rapidly evolving market landscape.
