🔸The market sentiment has changed: it is now more expensive to insure the value of Ether (ETH) against a price drop than that of Bitcoin (BTC), indicating growing concern about the downside risk of the second largest cryptocurrency.
- Data shows that Ether put options, which serve as insurance against declines, have a premium of between 2% and 7% over call options in the short term. This suggests that traders are paying more to protect themselves from potential losses in Ether.
- In comparison, Bitcoin put options only have a premium of 1% to 2.5%, indicating much less concern about a price drop.
- A trend shift: This change in sentiment occurs after Ether outperformed Bitcoin with a 48% increase in July. However, that rally lost strength due to concerns that it was more reliant on corporate adoption than on actual activity on the blockchain.
Options market traders view Ether as a riskier investment at this moment than Bitcoin, despite its strong recent performance. $ETH