Ether (ETH) outshined Bitcoin (BTC) in the cryptocurrency spot and derivative markets after the United States Nov. 5 presidential election and keeps gaining momentum, according to a Dec. 2 report by crypto exchange Bybit.
In November, Ether “gained significant traction against BTC, as reflected by the sharp drops in the ratio between their spot prices,” Bybit said in its November 2024 “Volatility Review,” co-created by market researcher Block Scholes.
Growing demand for ETH options also indicates “[t]raders are increasingly favoring ETH,” Bybit said in a statement.
Ether’s outperformance accelerated after US Securities and Exchange Commission Chair Gary Gensler announced plans to step down on Nov. 21, bringing “additional momentum and attention” to the asset, according to the report.
Since then, “[t]his most recent move has been sustained.”
Source: CoinStats
Related: SEC Chair Gary Gensler to step down
Is altseason here?
Bybit said ETH’s mounting dominance is “clearest in spot,” where the ratio of ETH to BTC has risen from around 0.0325 on Nov. 21 to more than 0.04 as of Dec. 6, according to TradingView.
Hartmann Capital founder Felix Hartmann believes the pivot from BTC to ETH is a signal that Wall Street is “officially joining the fun” on the “alt rotation.”
During the week of Nov. 26, Bitcoin funds saw outflows of $457 million — the first significant outflows since September — while ETH funds saw inflows of $634 million during the same period, according to CoinShares’ Dec. 2 weekly digital asset fund flows report.
Overall, Bitcoin’s crypto market dominance has been waning, falling from a high of more than 58% on Nov. 21 to less than 52% as of Dec. 6, according to CoinStats.
Source: Bybit
Expecting volatility
Meanwhile, traders are bracing for a rise in ETH volatility, according to Bybit.
In November, options markets experienced a “surge in ETH volatility [that] points to a stronger demand for ETH optionality than BTC,” Bybit said.
“[W]e must highlight that this is a return to usual programming for the pair, rather than an unusual dislocation,” Bybit added.
“ETH has, throughout almost its entire history, moved with a high correlation to but much larger volatility than BTC.”
Magazine: Make Ethereum feel like Ethereum again: Based rollups explained