Traders in Bitcoin and Ethereum Stay Optimistic About the Market

Traders in Bitcoin and Ethereum hold a positive view on the market’s future, even after recent price fluctuations affected digital assets overall.

As per Derive.xyz, an on-chain derivatives platform, the market assigns a 22% likelihood that Ethereum will exceed $5,000 by October 31. Bitcoin is viewed more favorably, with a 34% chance of surpassing $120,000 in the same period.

Additionally, projections for the longer term suggest this bullish sentiment extends into December.

Data from Derive indicates a 12% probability for Ethereum to break $7,000, while Bitcoin has a 26% chance of going over $135,000. These figures highlight how traders are positioning for potential catalysts, despite short-term fluctuations.

This optimism follows increased market volatility, which saw Bitcoin and Ethereum retest levels of $110,000 and $4,000, respectively.

According to Derive, record liquidations totaling $1.7 billion accelerated this movement, raising Ethereum’s implied volatility from 57% to nearly 70% on Monday, with Bitcoin’s volatility rising to about 30% as well.

With BTC experiencing below-average volatility over the past month, Derive founder Nick Forster told CryptoSlate that October might signal a pivotal moment as digital asset treasuries gear up for more assertive operations.

He noted:

“On Derive.xyz, traders are positioning for a significant upside. For BTC, there’s a substantial cluster of calls around $145,000/$155,000/$170,000 for the October 31 expiry. For ETH, traders are anticipating a move of over 10% with focus on $5,000/$5,200 strikes.”

‘Alt Hyperliquid’

A new realm of decentralized exchanges is gaining traction beyond Bitcoin and Ethereum.

Forster emphasized the emergence of “alt hyperliquids,” aimed at becoming liquidity hubs in areas like perpetuals, prediction markets, and spot trading.

An outstanding example is ASTER, the native token of a perpetual DEX supported by Binance’s founder Changpeng Zhao. Remarkably, the platform eclipsed Hyperliquid’s daily volume for the first time on September 23.

This has resulted in significant price increases for the token, with ASTER surging over 2000% since its launch to reach an all-time high of $2.26, according to CryptoSlate’s data. Moreover, the total value locked on the platform has climbed to $1.79 billion, according to DefiLlama data.

Simultaneously, Avantis (AVNT), another perpetual DEX operating on Base, has also seen remarkable growth, with its token doubling from $1.08 to $2.21 in recent weeks.

Forster remarked:

“This surge of interest alludes to a new DeFi trend [akin to] the emergence of alternative Layer 1s during the 2020–2022 cycle.”

Mentioned in this article