It’s no surprise that bitcoin has recently seen unprecedented and impressive value growth. Many factors, including the digital currency’s efficiency under the pandemic, has been a driving factor for bitcoin’s recent surge. Many are hoping that ethereum will also follow similar trends. However, stock market experts are signaling the negative.
During this trading week, ether and bitcoin saw impressive growth as news of a bullish report pumped stock market investors’ hopes. The news has led many to believe that digital currencies are in for surges similar to 2017. It’s also not surprising that some traders think the new high for bitcoin and ether will reflect across digital currencies, like ethereum and others. The stock market reviewers have looked at the data and are warning new traders to not make the mistake of early judgment.
Stock Market Analysts Say That Bitcoin High Does Not Necessarily Mean A Value Surge For Ethereum
If we look at the market data, it’s clear that recent bitcoin highs have occurred most improbably. Even after analyzing the bullish reports, the surge has surprised many stock market investors. The recent trades include the LedgerX strike in December that was worth approximately $100,000 and the 20 BTC CME strife worth $70,000.
Surely, the anecdotal trade does not mirror the broader stock market picture. Also, note that ether contract in December is anticipated to be $1,120. Considering that only forty-two days are remaining until this contract expires, the trade looks most bullish. Even so, it’s nowhere near bitcoin options, which stands at 330 percent higher than this. Given the broader digital currency state, do you think ethereum will follow suit?
Deribit has also called in their ether option for March next year. The strikes are trading above $1,600. It’s possible that this is due to ethereum 2.0’s coming launch on 1st December. The upside for this trade is reportedly 230 percent. Comparing it with bitcoin, the difference is very vast for ethereum to rise up as many are expecting.
Trader Optimism About BTC
Bitcoin options started flooding the stock market long before any of us could have anticipated its high. Currently, the digital currency has $50,000 call options for next year.
In contrast to ether, bitcoin has huge bets. Some are more than $17,000. Around 40 percent of bitcoin options are currently estimated to be $16,000 and more. The BTC option stands at $3.75 billion. Moreover, the bitcoin value has jumped by 18.5 percent in just the last ten days. This unrealistic surge will be very difficult for any other digital currencies to mirror.
As a result, stock market analysts are advising new investors to be careful in their judgment with ethereum.
