Bitcoin (BTC) has struggled to support more than USD 53,000 for the past three days, while Ether (ETH) soared to a new record of USD 2,800. In the current scenario, some traders would rather wait for Friday’s CME futures to expire before entering long BTC positions as historically the price tends to correct ahead of the event.
On the other hand, the price of Ether was positively impacted by the launch of a “digital bond” sale by the European Investment Bank through the Ethereum network. The EIB is issuing a two-year 100 million euro ($ 120.8 million) digital bond, with the deal led by Goldman Sachs, Santander and Societe Generale.
Additionally, JP Morgan released a research paper last week saying that Ether should continue to outperform Bitcoin due to improvements in liquidity and increased activity on the network.
According to fixed income analyst Joshua Younger:
Bitcoin is more of a crypto commodity than currency and competes with gold as a store of value, while Ether is the backbone of the crypto-native economy and therefore functions more as a medium of exchange. activity is more valuable. “
When analyzing the net long / short ratio of users at OKEx, surprising data emerges. The indicator is calculated based on the consolidated positions of clients, including perpetual and forward contracts. The share of Ether longs versus the shorts hit its lowest level in 2021 and fell significantly lower than Bitcoin’s.
Ether longs dominated massively in 2021, peaking at 130% greater than shorts, while Bitcoin traders tended to be more modest. However, the market trend reversal on April 29 is because the ratio for BTC longs is 45% higher than for shorts.
Meanwhile, Ether traders are only 6% net long, indicating a lack of confidence in the recent rally.
One should not interpret OKEx traders’ position in Ether as bearish as the long-to-short ratio is relatively flat. However, the April monthly trend leaves no doubt that Bitcoin traders are becoming more optimistic.
Traders should not ignore Friday’s BTC and Ether options expiration date. Bitcoin’s $ 3.9 billion expiration poses a threat to the bulls if the price falls below $ 50,000 as the neutral-to-bearish put options would then have a $ 700 million advantage.
Currently, bulls dominate Ether’s more modest $ 930 million expired options, and the $ 115 million difference in open call options seems guaranteed even as Ether’s price falls to $ 2,600.
However, both cryptocurrencies may experience volatility after the options expire on Friday at 8:00 am UTC and the following CME futures and options at 3:00 pm UTC.
The views and opinions expressed here are solely those of the author and do not necessarily reflect Cointelegraph’s opinion. Every investment and trade move carries risks. You should do your own research when making a decision.