Bitcoin (BTC) punters are considering topside option bets in bullish changes in price expectations after the Federal Reserve meeting, but Ether (ETH) continues to slow emotions.
At the time of writing, BTC's short- and long-term risk reversals indicate the implicit volatility premium for bullish bets or calls and puts, implying investors' interest in chasing price increases in key cryptocurrencies, according to data source Amberdata.
It shows a shift from bearish feelings that win a few weeks before the Fed meeting, when the short date and nearby puts were more expensive than the call and reflected the fear of the downside.
“Front-end skew flip call. Flow purchased a full call and calendar for March 21, and put on sale on March 28,” pointing to the agency-centric, commercially available technology platform paradigm pointed out on Telegram Chat. Institutions and large traders perform block trading via OTC platforms such as Paradigm and are then listed on Deribit.
An option is a derivative agreement that provides the buyer with the right one and is not an obligation to purchase or sell the underlying assets at a given price at a later date. Call options grant you the right to buy, and put options grant you the right to sell.
Despite making the Stagfries adjustments expected in the economic forecast, the Federal Reserve retained two interest rate cut forecasts this year, resulting in a bullish shift in short dates and nearby options. The bank said the balance sheet will slow down from April.
More importantly, Chairman Jerome Powell downplays fears about the inflation impact of Trump's tariffs and calls it temporary.
Furthermore, the end of the long-term legal dispute between the SEC and Ripple, which uses XRP for cross-border transactions, could have probably helped emotions. XRP is the fourth largest cryptocurrency in the world with a market capitalization of $1422.1 billion.
Ether remains more expensive
However, these positive developments have not yet led to positive flips of short-term and near-dated ether options.
At the time of the press, the reversal of etheric risk showed bias to come out at the May expiration date despite the looming Ethereum Pectra upgrade, retained the careful sentiment given in advance.
With the technology update, Smart accounts are introduced into the extensions of Ethereum, Blob Scaling and Validator UX, which many consider to be a game changer. Ethereum Developers launched a new test network Hoodi this week to carry out the imminent upgrade scheduled for effective March 26th.
It should be noted that persistent bias in ether puts can be driven in part by traders seeking to hedge the risk of other altcoin shortcomings. Ether is widely seen as the leader of altcoins.
