TI Weekly Options Market : Ethereum is full of momentum

TI Research

Crypto assets continued to show strong momentum in the fourth quarter of 2021. Bitcoin broke through a record high last week and its spot price reached $67,000. The rise of Bitcoin and Ethereum has played a very leading role in other tokens. Investors should be reminded that the Meme coin has experienced a significant decline, which is vital to the healthy development of the crypto market.

Summarizing the data of last week's market, we find that:

  • The price of Bitcoin broke out ATH ,call option premium is obvious;
  • Some investors allocate put options to hedge market risk;
  • Long—term holders are selling coins on the chain.


The strong performance of Bitcoin has led to active transactions in the options market. Recently, the premium trading of call options is obvious. From the perspective of Bitcoin's option holding structure, some investors have allocated some put options for ATH, and some crypto-asset investors are more cautious in participating in Bitcoin. The focus of allocation is to trade put options whose expiry date in this year.

From the perspective of options market indicators, when the market fell, Skew once touched a negative value, which also confirmed investors' concerns about the market decline. From the perspective of implied volatility indicators, the current market divergence is not obvious. We can see that the overall implied volatility has remained in a low range, and has not exceeded 100% in several upward movements.

From the perspective of on-chain indicators, long-term investors are releasing crypto assets. According to the on-chain information released by Glassnode, the age of currently transferred bitcoins is rising, and the trend is very obvious. We should also understand that the withdrawal of long-term holders means the amplification of market volatility, and perhaps the slope of future market changes will increase.


It was also Ethereum that broke the record high last week. Due to the continuous innovation of practitioners, investors have purchased many out-of-the-money options on Ethereum. This position structure is more optimistic than Bitcoin. Observing the current market, compared with last year's DeFi Summer, this year's chain innovations are more diverse: DeFi 2.0, NFT, GameFi, and other chain applications are emerging. Convex and Olympmus provide participants with better returns with a new model, which is conducive to the stability of the token price, or it magnifies the volatility of the market.

According to the data released by 3iQ, we can further combine the current market structure to observe the market. In March 2020 and May 2021, the proportion of mainstream assets will increase significantly. In the last 3 months, although the prices of Bitcoin and Ethereum have broken through new highs, the market value ratio of altcoin is gradually increasing, which shows that the market is currently in a clear bull market.


According to the data displayed by Coinshares, last week’s crypto-asset funds had a net inflow of 170 million dollars, of which Bitcoin’s net inflow was 90 million dollars, and Ethereum’s inflow was 30 million dollars. It is worth mentioning that Tron has seen an inflow of 21.9 million U.S. dollars. The weekly inflows totaled 79 million dollars, which is rare. The Fed decided to start taper at the FOMC meeting in November. 2022 will be a year of rising interest rates, and α will be the most important factor in determining investor returns.


TI Research

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