Many traders have noticed that the price of Ether (ETH) has exceeded Bitcoin (BTC) by several months and the ETH / BTC ratio has risen more than 230% by 2021 and has recently reached a new high of 0.089 BTC on December 9th.

ETH / BTC pair in coinbase. Source: Business Vision
With that in mind, Ether’s $ 490 billion account makes up 54% of $ 903 billion Bitcoin. This ratio has reached just 15% by 2020, so it is safe to assume that there has been a change. It may be far from what Ethereum experts expected, but it is still a very respectable approach.

Instead of examining the reasons for the move or, judging by the outcome based on other loose expectations, analysts should look at the market structure of each currency separately.

For example, the futures market faces a similar financial situation in both, and how does the long-term to short-term ratio of professional traders compare? These are just some of the goal setting shareware that you can use.

Futures Premium is compatible with Ether
Future quarterly contracts are a popular tool for whales and intermediaries, but due to payday and price differences from local markets it can be tricky for retailers. However, the notable advantage of these quarterly agreements is the lack of a floating interest rate.

These monthly commodities are often sold slightly above market prices, indicating that retailers are asking for more money to stop paying in the long run. Therefore, futures contracts in healthy markets should be sold at an annual rate of 5% to 15%. This condition is called “cantango” and is not limited to hidden markets.

Based on Bitcoin and Ether Futures. Source: Laevitas.ch
By comparing the two graphs, we can see that Bitcoin futures traded at an annual average of 2.6% for March 2022 and 4.4% for June 2022. This compares with 2.9% and 5% . ether, respectively. As a result, it is clear that whales and arbitrage offices are demanding higher ether fees, and this is a high priority.

The long-term ratio of bitcoin has decreased
To accurately measure how professional traders are independent, investors need to monitor the long-term ratio of top sellers to high-end cryptocurrencies. This measure provides a broad overview of the success of the retailers by collecting data from multiple markets.

Stock traders collect data from top sellers in different ways because there are many ways to measure consumer net exposure. Therefore, any comparison between different providers should be made with percentage changes rather than whole numbers.

Part of the long-term sales of early Bitcoin investors. Source: Coinglass
The long-term average for top bitcoin traders is currently at 1.21, from 1.39 on December 5th. This indicates that consumers (langs) have reduced their exposure by 24 compared to 1.59 from the previous two weeks. % Also, the whole number is not more important than the whole time change.

Top Ether traders are long-term. Source: Coinglass
Meanwhile, the Ether Wales and Arbitrage offices have shown positive change from December 5, after a short-term move from 1.0 to 1.16. Compared to normal data from November 25, long-term exposure to high ether stocks has decreased by 20% from 1.43.

The data shows that ether traders are more reliable than bitcoin traders
Information about the latest products is in the interest of ether because the asset currently has a high interest rate on futures contracts. In addition, the long-term upgrade to the high-end shorts of investors from October 5 shows confidence in a cautious period in which the price of ETH dropped 16% from the entire period of $ 4,870.

Bitcoin investors may be disappointed as the November 10 price is 31% lower than the full-time high of $ 69,000. There is no way to know if it is the cause or the effect. However, depending on charges and data from long-term to short-term, Ether seems to have enough power to maintain optimal performance.

Source: CoinTelegraph

LEAVE A REPLY