ETH Outperforms BTC as Open Interest Rises: Bybit x Block Scholes Report

Ethereum has recently outperformed Bitcoin, marking a notable trend in the cryptocurrency market as the overall sentiment remains bullish. According to the latest derivatives analytics report by Bybit and Block Scholes, Ethereum’s performance has been particularly strong, with the cryptocurrency showing a steady rise in open interest for its perpetual swaps. This comes as Bitcoin’s open interest has slowed, especially after its retreat from the $100,000 mark reached earlier in the week.

In the report, Bybit and Block Scholes point out that Ethereum has seen a price increase of more than 8% over the past week, while Bitcoin has seen a slight decline of -1.6% during the same period. Ethereum reached a weekly high of $3,682 on November 28, while Bitcoin’s price retreated to $90,911 after briefly touching its all-time high of $99,531. This shift in price dynamics reflects an increasing investor interest in Ethereum, driven in part by optimism surrounding broader market factors.

One of the significant factors contributing to Ethereum’s outperformance is the rise in open interest for Ethereum perpetual swaps. Open interest, which refers to the total number of outstanding derivative contracts that have not been settled, has been consistently growing for Ethereum. In contrast, Bitcoin’s open interest has slowed following its retreat from recent highs. This indicates that traders and investors are increasingly favoring Ethereum in terms of both trading volumes and open positions.

The bullish sentiment across the market is partly attributed to the news that Gary Gensler, the Chairman of the U.S. Securities and Exchange Commission (SEC), will be leaving the agency on January 20, 2025. This announcement has sparked optimism, particularly in the cryptocurrency space, with many investors anticipating a more favorable stance toward crypto once new leadership takes over at the SEC. As the report notes, this change in leadership could potentially result in regulatory changes that would benefit the crypto sector as a whole, particularly altcoins like Ethereum.

Moreover, Ethereum’s options market has seen increased interest, especially in call options, suggesting that traders are betting on further price gains for Ethereum. In contrast, demand for short-term Bitcoin options has waned, reflecting a more cautious outlook among Bitcoin traders following its recent price pullback.

Ethereum’s outperformance is also evident in the continued growth in trading volumes and open interest, both of which are leading indicators of strong market participation. The report also highlighted that Ethereum has been trading volumes and open interest among altcoins, further underscoring the growing investor preference for Ethereum in comparison to Bitcoin.

In conclusion, Ethereum’s recent price rise, coupled with increased demand for Ethereum options and perpetual swaps, suggests that the altcoin is poised to continue outperforming Bitcoin in the near term. The growing investor optimism around regulatory changes, along with Ethereum’s expanding market position, places the cryptocurrency in a strong position as it leads the market in both performance and investor interest.