According to recent analysis by Wintermute, a noticeable capital migration from Bitcoin (BTC) to Ethereum (ETH) is underway. The derivatives market signals that investors are bullish on Ethereum’s future performance. During the weekend, there was a remarkable spike in open interest for Ether futures, accompanied by a rise in implied volatility, which suggests increasing market activity. Notably, the demand for call options has surged, reflecting heightened confidence among traders in the derivatives space.
The analysts highlighted that this transition from Bitcoin to Ethereum is characterized by a significant increase in Ether’s implied volatility, with the put-call skew reaching unprecedented levels in the past year, indicating a robust appetite for higher price movements. Furthermore, Wintermute points out that traders are propelling the market upwards through substantial buying efforts, marking a significant moment for Ethereum. In their latest update, they noted, “In recent trading sessions, there has been an unprecedented influx of funds into Ethereum, as open interest on trading platforms reached record levels.”