The current implied volatility values for Bitcoin and Ethereum options suggest a calm outlook for the cryptocurrency market in the coming weeks, according to Deribit’s Chief Commercial Officer Luuk Strijers, as reported by The Block.
This metric for the leading cryptocurrency has significantly decreased since mid-May.
Analysts at QCP Capital also noted signs of a sluggish market. They added that “implied volatility has weakened following the approval of the ETH-ETF, despite prevailing catalysts.”
Experts warned that “a sleepy market could be caught offside.” Anticipating such a scenario, they are placing bullish bets, particularly on Ethereum. A potential catalyst for change could be the earlier-than-expected commencement of trading for the exchange-traded fund based on it.
Strijers highlighted certain bearish expectations for the next two weeks, as reflected in the put-to-call ratio.
The corresponding metric for Ethereum has been rising since mid-May across several derivatives platforms. The publication explained that this could be due to some traders hedging positions over concerns about the postponement of product launches.
From May 23 to June 2, the total exchange balance of Ethereum decreased by 797,000 ETH ($3 billion).
Earlier, DeFiance Capital founder and CEO Arthur Cheong set a target of $4500 for the asset even before the launch of the ETH-ETF.