The current prices of Bitcoin, Ethereum, and top altcoins are decreasing. Bitcoin is hovering around $60,000 while still trying to recover from the significant losses on June 24 when it dropped to around $50,000.
Bitcoin And Ethereum Put-Call Ratio Decline
Despite the price movements, traders are showing optimism for the future. According to Kaiko, a crypto analytics platform, the put-to-call ratio for both Bitcoin and Ethereum decreased in June following a brief increase in May.
The put-call ratio is a key metric used to assess market sentiment by dividing the total trading volume of put options by call options.
In options trading, “puts” are contracts betting on price decreases, while “calls” are for price increases. A rising put-call ratio indicates a belief among traders that prices will fall as more puts are being purchased.
Kaiko data reveals that the Bitcoin put-call ratio rose from 0.2 in April to above 1 in May, showing more bearish sentiment anticipating price drops. However, after recovering from lows in early June, the ratio dropped to around 0.5, indicating weakening confidence as prices failed to exceed $72,000.
Spot Ethereum ETF Expectations Boosting demand for ETH
Similar trends were observed in Ethereum, with the put-call ratio decreasing due to anticipation surrounding spot Ethereum exchange-traded funds (ETFs) launch in the United States.
While the drop in the put-call ratio signals a reduction in bearish bets for ETH, some short-term pessimism may persist as Ethereum trades below $3,700, still performing better than Bitcoin.
To see a bullish trend, Ethereum needs to surpass $3,700 convincingly. The introduction of spot Ethereum ETFs could act as a catalyst for this upward momentum and provide regulatory clarity and support for the second-largest cryptocurrency.
