Bitcoin (BTC) has struggled to maintain over $ 53,000 over the past three days, while Ether (ETH) rose to an all-time high of $ 2,800. In the current scenario, some traders prefer to wait for Friday’s CME futures to expire before entering into long BTC trades, as the price has historically tended to correct before the event.
Coinbase Ethereum and Bitcoin Prices, USD Source: TradingView
On the one hand, the launch of the EIB “digital bond sale” using the Ethereum network had a positive effect on the price of Ether. The European Investment Bank issues 100-year ($ 120.8 million) digital bonds for two years under an agreement between Goldman Sachs, Santander and Societe Generale.
Additionally, JP Morgan published a research note last week that Ether should continue to outpace Bitcoin due to improved liquidity and increased online activity.
According to fixed income analyst Joshua Younger:
“Bitcoin is more of a cryptocurrency than a currency and it competes with gold as a store of value, while Ether is the backbone of the cryptocurrency economy and thus acts as a medium of exchange. The potential activity is more valuable.”
When analyzing the relationship between long and short positions of users on OKEx, surprising data emerges. The index is calculated using standard client positions, including permanent and forward contracts. The share of Ether for short selling reached its lowest level in 2021 and was well below the share of Bitcoin.
The ratio of long and short positions in OKEx futures. Source: OKEx
Ether dominated the longest through 2021, peaking 130% more short positions, while Bitcoin traders were generally more modest. However, the market trend will reverse on April 29th, as the proportion of BTC lengths is 45% higher than the short ones.
Meanwhile, Ether traders have only 6% net buy positions, indicating distrust of the recent rally.
The position of OKEx traders on air should not be interpreted as bearish since the relationship between long and short positions is relatively flat. However, the monthly trend in April leaves no doubt that Bitcoin traders are becoming more optimistic.
Merchants should not dismiss Bitcoin and Ether expiring Friday. The expiration of $ 3.9 billion poses a risk to the bulls if the price falls below $ 50,000, given that bearish-neutral options would have a $ 700 million advantage.
Bulls currently dominate the more modest $ 930 million Ether options, and the $ 115 million difference in open price options appears to be guaranteed even if the Ether price drops to $ 2,600.
However, both cryptocurrencies may experience volatility after options expire on Friday UTC at 8:00 AM and subsequent futures and options expire on the CME at 15:00 UTC.