Interest in call options expiring after the Pectra hard fork on the Ethereum network is reshaping the cryptocurrency market amid uncertainty surrounding actions by U.S. President Donald Trump, according to a report by QCP Capital.
Asia Colour — 18 Feb 25
1/ The options market is signaling a shift. #ETH’s term structure is developing a kink around the March expiry, likely reflecting positioning ahead of Ethereum’s Pectra upgrade, expected to go live in early April.
— QCP (@QCPgroup) February 18, 2025
Pectra, initially scheduled for early March 2025, is now anticipated to occur on April 8. This date was chosen by the consensus layer team during an ACDC Call on February 6.
According to QCP Capital, following The Merge in September 2022, a classic “buy the rumour, sell the news” model emerged—Ethereum’s price more than doubled from its June lows, only to face a pullback.
The next major upgrade, Shanghai in April 2023, was met with market pessimism due to fears of increased supply. When these fears were not realized, prices rose by 30% in the following months.
Weakness in altcoins may also hinder recovery, experts believe.
“Beyond market catalysts, sustainable growth will require significant progress in cryptocurrency adoption and network development, not just speculative flows,” they concluded.
Ethereum faces “intense competition” from rival blockchain projects like Solana, according to analysts at JPMorgan.
Earlier, analysts suggested further weakening of digital assets amid political uncertainty.