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Bitcoin or Ethereum? Options Traders Are Placing Their Bets for a July Breakout

2025-07-05 11:41:39

Bitcoin or Ethereum? Options Traders Are Placing Their Bets for a July Breakout

Main Idea

Bitcoin and Ethereum markets saw reduced volatility in June, with traders positioning for potential significant moves in July, while Ethereum's options market shows a more bullish sentiment due to upcoming catalysts.

Key Points

1. Bitcoin and Ethereum markets experienced reduced implied volatility in June despite geopolitical events, with Bitcoin briefly dropping below $100,000 before rebounding.

2. Derive.xyz data indicates traders are positioning for a volatile July, with Bitcoin's options market showing expectations of movement between $130,000 and $90,000.

3. Ethereum's options market reveals a bullish shift, with nearly 80% of July call open interest above $3,000 and 30% beyond $3,500.

4. Robinhood's announcement of tokenized stocks and a Layer 2 solution on Arbitrum is cited as a potential catalyst for Ethereum's bullish momentum.

5. The CME FedWatch tool shows a 95% chance of unchanged Federal Reserve rates in the upcoming FOMC meeting, influencing market expectations.

Description

Bitcoin and Ethereum markets saw reduced implied volatility throughout June, despite geopolitical events that briefly rattled prices. Traders on Derive.xyz, an on-chain options platform, are now adjusting their strategies for a potentially volatile July, following what analysts describe as a period of “muted response” to high-stakes global risks. According to a report by Derive’s head of research, Sean Dawson, data shows traders had already priced in the likelihood that last month’s Middle East ...

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