In a first since August, Ether futures premiums are matching Bitcoin futures on the Chicago Mercantile Exchange (CME). This suggests a significant shift in the crypto market sentiment, according to analysts.

“The bearish stance on ETH is gone,” the analysts stated.

Further, the derivatives markets are reflecting a more optimistic outlook following Bitcoin’s latest 4% price rally, Lunde and Helseth noted. Traders on the CME have exhibited strong faith in Bitcoin, maintaining record-high exposure and double-digit futures premiums, indicating robust institutional demand and an optimistic outlook for November.

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The offshore perpetual markets are also shifting from a bearish to a neutral stance. As Bitcoin trades back at annual highs, the tendency to short-sell has declined, while the propensity to go long has increased, the analysts highlighted.

Options traders are also keeping a bullish stance, resonating with the broader derivatives sentiment, the K33 Research analysts said. The surge in implied volatility following recent price movements suggests that volatility strategies in options trading have become more expensive.

However, despite these developments in the derivatives market, there is no strong evidence of a consistent rise in spot volumes. The market continues to respond dynamically to price movements, with volumes peaking during active trading periods and then settling back, the analysts noted.

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Bitcoin and Ethereum Photo by Marisha on Shutterstock