ANALYSIS: ETH Market Sentiment More Bearish Compared to BTC

On October 11, CoinDesk reported that market sentiment for ethereum (ETH) is more bearish compared to bitcoin (BTC), despite Republican candidate Donald Trump's lead over Democratic candidate Kamala Harris in prediction markets.Data from Amberdata and Deribit show that ethereum's short- and long-term risk reversal indicators are more negative than bitcoin's, suggesting that ethereum Place traders are more inclined to hedge against potential downside risk. In contrast, traders expect Bitcoin's volatility to increase following the U.S. election results, while Ether's optimism may not emerge until the end of December.

Moreover, data on decentralized exchanges also showed that sells of Ether call options were much higher than buys, suggesting that traders have limited expectations for Ether to rise in the near term. Meanwhile, Trump's lead has fueled optimism about Bitcoin and decentralized finance (DeFi), particularly due to his launch of World Liberty Financial, a DeFi project, in September.However, some observers believe that a Trump victory could be more favorable to Ether rival Solana, while a Harris victory could be more favorable.