BTC and ETH implied volatility decline, traders flock to the options market seeking leverage

According to The Block, the volatility of Bitcoin and Ethereum has dropped to a 7-day low this week, with BTC and ETH options open interest (OI) increasing by approximately $1 billion and $150 million, respectively. According to data from the Derive platform, 73% of the premium in BTC options is used to buy call options, and the proportion of ETH is as high as 81.8%. The number of call options is three times and four times that of put options, indicating strong bullish sentiment. However, data from mainstream platforms such as Deribit shows that the overall market is still relatively cautious. Analysis suggests that even in the worst-case scenario, BTC and ETH are expected to maintain their current range in May.