Volatility of #Ethereum shoots up to 7% with #pectra and record burn of #ETH while #bitcoin remains stable
Is a season of #altcoins approaching?
The implied volatility index of Ethereum (ETH DVOL) from Deribit, which measures expected price turbulence over 30 days, rose by 11% to an annualized 7% this week, according to TradingView, while the equivalent index for Bitcoin (BTC DVOL) remained stable at multi-month lows near 45%.
This has widened the gap between the two to 27%, the largest in two years, reflecting expectations of higher volatility in ETH and the altcoin market.
The Pectra update of Ethereum, implemented this week, has spurred activity on the blockchain, with over 38,000 ETH burned in 24 hours, returning ETH to deflationary.
Traders on Deribit are buying ETH calls with higher strikes, anticipating price increases.
Meanwhile, the Bitcoin dominance index shows signs of weakening after five months of increases, which could indicate the start of an altcoin season.
