ETH outperforms BTC amid rise in open interest: Bybit x Block Scholes report

Ethereum has outpaced Bitcoin over the past week as the cryptocurrency market continues to show a bullish outlook.

In their latest derivatives analytics report, Bybit and Block Scholes highlighted Ethereum’s (ETH) strong performance compared to Bitcoin (BTC) this past week. Bybit is a global crypto exchange that’s the world’s second-largest by volume, while Block Scholes is a London-based advanced research and data analytics company.

A collaborative report by the two companies notes that perpetual swaps for Ethereum shows a steady rise in open interest. In contrast, open interest for BTC slowed after the flagship cryptocurrency retreated off highs near $100,000 reached last week.

Ethereum price rose more than Bitcoin during this period, Bybit and Block Scholes noted in the report. A look at crypto.news market data shows ETH is up more than 8% this past week – compared to Bitcoin’s -1.6%. This follows news that U.S. Securities and Exchange Commission Chair Gary Gensler will exit the agency on January 20, 2025.

Cryptocurrencies, including XRP, Cardano and Stellar and Polkadot have outperformed during this time, with Gensler’s resignation fueling optimism across the sector.

“This trend reflects investor optimism, with many anticipating a shift in the SEC’s leadership by January 25, 2025, which could bring a more favorable stance toward cryptocurrencies,” the report reads in part.

Ethereum reached a weekly high of $3,682 on Nov. 28, while Bitcoin’s price retreated to $90,911 after peaking at an all-time high of $99,531.

The decline from the area near the $100K mark sees the money volatility structure constrained, and short-tenor options have crossed below 60%.

According to the report, this reflects the pattern witnessed since the U.S. election, with price dropping amid lower realized volatility. Despite OI in calls and puts remaining unchanged, demand for short-term BTC options has waned over the week.

ETH options, on the other hand, continue to see increased interest in call options, while the altcoin leads the rest of the market in trading volumes and open interest.