"Bitcoin-Ethereum, Implied Volatility Decreases... Bullish Predictions Open Interest Surges"

An analysis has emerged stating that the implied volatility (IV) of Bitcoin (BTC) and Ethereum (ETH) has significantly decreased, while the open interest (OI) predicting a bullish trend has surged.

On the 30th (local time), The Block reported, "As the virtual asset (cryptocurrency) market stagnates and implied volatility decreases, traders have significantly increased the size of bullish option positions."

According to the data, the 7-day implied volatility of Bitcoin and Ethereum decreased from 53% to 38% and from 74% to 61%, respectively, compared to last week. The 30-day implied volatility also decreased slightly, with Bitcoin dropping from 50% to 43% and Ethereum from 69% to 63%. Open interest has surged significantly. From the 28th (local time) over two days, the open interest for Bitcoin and Ethereum increased by $1 billion and $150 million, respectively.

Sean Dawson, an analyst at Derive, evaluated in an interview with the media, "As volatility decreases, traders are actively buying assets using cheap leverage."

He particularly noted that most traders are anticipating a rise. Sean Dawson said, "A whopping 73% of all Bitcoin option premiums are used for call option purchases, and Ethereum records an even higher 81.8%," adding, "The options market is dominated by extreme bullish sentiment." Currently, the demand for Bitcoin call options is three times higher than for put options, and for Ethereum, call option demand is four times higher.

Meanwhile, he predicted, "By May 30th (local time), there is an 8% probability that Bitcoin will fall to $80,000, and a 21% chance that Ethereum will fall below $1,600."