ALSO: Hong Kong’s proposed crypto exchange rules value TradFi chops over crypto knowledge. What are the key potential changes?
Bitcoin Climbs Past $27.4K but Remains in Holding Pattern as Investors Continue U.S. Debt Limit Vigil
Ether and most other major altcoins rise slightly, even as stocks drop amid worries about whether U.S. lawmakers will reach an agreement before June 1.
Number of Ether Staked Has Surged By 4.4 Million Since Shapella Upgrade
Staking refers to locking coins in the blockchain network in return for rewards.
First Mover Asia: Bitcoin Holds Steady Near $27K as Investors Weigh Debt Ceiling Developments
ALSO: Former CoinDesk head of research writes that despite government efforts in such large, emerging countries as Pakistan and Nigeria to curb crypto activity, citizens there seem to be turning to digital assets as a hedge.
Role Reversal: Ethereum Defies Expectations With Lower Volatility Than Bitcoin
Ethereum (ETH), the second-largest digital asset in the cryptocurrency sector, is currently captivating traders’ attention as volatility gauges indicate an intriguing shift in market dynamics.
Contrary to the customary pattern, these indicators are suggesting that Ether may experience relatively smaller near-term price fluctuations compared to Bitcoin, according to Bloomberg.
This unexpected reversal has injected a fresh element of anticipation and curiosity among investors, who are now closely monitoring the evolving landscape of cryptocurrencies.
Narrowing Gap Between Ethereum And Bitcoin Volatility
The T3 Ether Volatility Index, an innovative tool, lies at the core of this phenomenon. It has emerged as an indispensable barometer for assessing and foreseeing price volatility in the Ether market.
The data compiled by Bloomberg reveals that the difference in volatility between Ether and Bitcoin, as measured by the 180-day realized or historical volatility, is currently at its smallest since 2020. Furthermore, this difference is only marginally positive, indicating a remarkably close alignment between the volatility of Ether and Bitcoin.
Caroline Mauron, co-founder of crypto derivatives platform OrBit Markets, told the publication:
“Lower volatility typically helps institutional investors to allocate more capital to crypto, as it becomes cheaper to buy protection and manage exposures… the volatility spread compression may drive more exposure to Ether from long-term investors.”
Implications Of Ethereum Price Fluctuation
The changing flux of Ether’s volatility behavior have significant implications. Notably, the Bitcoin and Ether implied volatility indexes, which rely on options pricing, have experienced declines after reaching recent highs in March.
However, Ether’s implied volatility has decreased at a faster pace. Additionally, a broader measurement of cross-asset fluctuations in global markets has also witnessed a decline.
The implications of Ether’s changing volatility behavior are multifaceted. The faster decline in Ether’s implied volatility suggests that market participants have become less uncertain or less anxious about the future price movements of Ether compared to Bitcoin. This could be influenced by various factors such as regulatory developments, market maturity, or growing investor confidence in Ether’s long-term potential.
Furthermore, the broader decrease in cross-asset swings indicates a potential reduction in risk aversion among investors, as they perceive a more stable and predictable market environment. This could impact investment decisions and trading strategies, as market participants may adjust their risk management approaches and allocation of resources based on the evolving volatility landscape.
The changing volatility of Ether, as reflected in the Bitcoin and Ether implied volatility indexes and the broader measure of cross-asset swings, highlight the evolving nature of the cryptocurrency market.
-Featured image from Coinnounce
First Mover Asia: Will Bitcoin Soon Begin a Retest of 30K?
ALSO: Crypto companies and trade organization are spending a fraction of the amount that other industries are allocating for lobbying. That may change.
First Mover Asia: Traders Long on Bitcoin Despite Debt Ceiling Challenges, Dark U.S. Regulatory Clouds
PLUS: Meme coins don’t respect the intellectual property rights of others. And that’s a problem.
Litecoin Leaves Bitcoin and Ether Behind With Rally to One-Month High
Litecoin has chalked out a double-digit price rally to hit the highest since April 19.
Crypto Observers Decode Large Block Trade in Ether Options
Debate rages on whether the large ether options flow witnessed on Tuesday represents a bet on return of volatility or a rollover of a “covered call” strategy.
First Mover Asia: Biden’s Tough Talk, Tether’s Bitcoin Bet Not Moving Crypto
PLUS: We really need to see the Hinman emails.
Investors Track Pepecoin Whales to Cash In on Meme Coin Mania as Wider Market Stagnates
Crypto investors are attempting to capitalize on the latest wave of meme coin mania by tracking the movements of early pepecoin (PEPE) buyers.
First Mover Asia: Crypto’s Rotating Profits
Origin Protocol Enters Competitive Ether Yield Market With OETH Offering
OETH is a yield-bearing, ether-pegged token, offering an easy way to maximize yield from ETH staking using protocols such as Curve Finance.
Bitcoin-Ether Correlation Weakest Since 2021, Hints at Regime Change in Crypto Market
As Ethereum has shifted from PoW to PoS, the economics of supply and demand underlying the two cryptocurrencies will continue to diverge, one observers said.
The New Crypto Cycle Will Be About Ether Yields: Bernstein
Ether staking trends following the Shanghai upgrade have beaten expectations, the report said.
First Mover Asia: Bitcoin, Ether Prices Stuck in ‘Wind Tunnel’
There all sorts of indicators traders can use to get a sense of where sentiment is heading in crypto markets. A key metric is funding rates on perpetual futures on bitcoin and ether.
Bitcoin Rebounds Above $27K as Investors Weigh Debt Ceiling Debate, Liquidity Concerns
Investors have been eyeing particularly low liquidity in crypto trading as market makers turn cautious.
U.S. Prosecutors Drop Extortion Charges Against Early Adviser to Ethereum Network
Criminal extortion charges against Steven Nerayoff, an early adviser to the Ethereum network, were dismissed by a New York judge on May 5, ending a three-and-a-half year legal battle that included explosive allegations he made against U.S. investigators.
Ether Holders Embrace Near Month-Long Wait for Staking ETH
Demand for staking ether has surged, resulting in wait times of over a month for a 5% annualized yield as of Monday.
First Mover Asia: Bitcoin Regains $27K Amid Encouraging Macro, Technical Signs
ALSO: The stablecoin supply ratio has dropped 11% over the past 11 days, suggesting that buying power for stablecoins is increasing, writes CoinDesk analyst Glenn Williams.