Analysis: Encrypted options indicate that the ETH/BTC ratio is expected to decline further

After President Donald Trump did not mention any cryptocurrencies in his inauguration speech on Monday, options listed on the Deribit exchange show that the downward trend of the ETH/BTC ratio is still ongoing. According to risk reversal data tracked by Amberdata, as of noon Hong Kong time, Bitcoin call options traded at higher prices than Ethereum call options over multiple periods. Risk reversals are calculated by measuring the implied volatility difference between call and put options; when this value is positive, it indicates a bullish market sentiment. Notably, BTC's risk reversal shows that short-term and near-term call option trading prices are 4 to 5 volatility points higher than put options. Meanwhile, the volatility premium for Ethereum's call option trading price relative to its put option is relatively lower. In other words, it is expected that the ETH/BTC ratio will continue to decline. Earlier this week, the ETH/BTC ratio had already hit a three-year low of 0.03.