{"id":378869,"date":"2021-12-10T01:05:11","date_gmt":"2021-12-09T22:05:11","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/data-shows-pro-traders-are-currently-more-bullish-on-ethereum-than-bitcoin\/"},"modified":"2021-12-10T01:05:11","modified_gmt":"2021-12-09T22:05:11","slug":"data-shows-pro-traders-are-currently-more-bullish-on-ethereum-than-bitcoin","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/data-shows-pro-traders-are-currently-more-bullish-on-ethereum-than-bitcoin\/","title":{"rendered":"# Data shows pro traders are currently more bullish on Ethereum than Bitcoin"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a36ebb50acf8\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a36ebb50acf8\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/data-shows-pro-traders-are-currently-more-bullish-on-ethereum-than-bitcoin\/#The_futures_premium_favors_Ether\" >The futures premium favors Ether<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/data-shows-pro-traders-are-currently-more-bullish-on-ethereum-than-bitcoin\/#Bitcoins_long-to-short_ratio_declined\" >Bitcoin&#8217;s long-to-short ratio declined<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/data-shows-pro-traders-are-currently-more-bullish-on-ethereum-than-bitcoin\/#Data_shows_Ether_traders_are_more_confident_than_Bitcoin_traders\" >Data shows Ether traders are more confident than Bitcoin traders<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Data shows pro traders are currently more bullish on Ethereum than Bitcoin <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>Most traders have noticed that Ether (ETH) price has seriously outperformed Bitcoin (BTC) for months now and the ETH\/BTC ratio has rallied more than 230% in 2021 and recently hit a new high at 0.089 BTC on Dec. 9.\u00a0<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-12\/13842a11-fb1a-449f-86a1-bb0f6f3b71af.png\"><figcaption style=\"text-align: center;\"><em>ETH\/BTC pair at Coinbase. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>To put things in perspective, Ether&#8217;s $490 billion market capitalization currently represents 54% of Bitcoin&#8217;s $903 billion. This ratio finished 2020 at a mere 15%, so it is safe to conclude that some &#8216;flippening&#8217; has occurred. It might still be far from what Ethereum-maximalists imagined, but it is still quite a respectable run.<\/p>\n<p>Instead of analyzing the rationale for the move or, even worse, predicting the outcome based on some loose expectations, analysts should explore the market structure of each coin individually. <\/p>\n<p>For example, is the futures&#8217; market premium facing a similar trend on both coins and how does the pro traders&#8217; long-to-short ratio compare? These are the most relevant metrics to determine whether a movement has the strength to continue.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_futures_premium_favors_Ether\"><\/span>The futures premium favors Ether<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Quarterly futures are the whales and arbitrage desks&#8217; preferred instruments but because of their settlement date and the price difference from spot markets, they might seem complicated for retail traders. However, these quarterly contracts&#8217; most notable advantage is the lack of a fluctuating funding rate.<\/p>\n<p>These fixed-month instruments usually trade slightly above spot market prices, indicating that sellers are requesting more money to withhold settlement longer. Consequently, futures should trade at a 5% to 15% annualized premium in healthy markets. This situation is known as &#8220;contango&#8221; and is not exclusive to crypto markets.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-12\/fd986b93-7514-4a4f-9a42-680c27a3db20.png\"><figcaption style=\"text-align: center;\">Bitcoin and Ether futures basis. Source: Laevitas.ch<\/figcaption><\/figure>\n<p>After comparing both charts, we can see that Bitcoin futures trade at an average 2.6% annualized premium for March 2022 and 4.4% for June 2022. This compares to Ether&#8217;s 2.9% and 5%, respectively. As a result, it becomes clear that whales and arbitrage desks are demanding a larger premium on Ether and this is a bullish indicator.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Bitcoins_long-to-short_ratio_declined\"><\/span>Bitcoin&#8217;s long-to-short ratio declined<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>To effectively measure how professional traders are positioned, investors should monitor the top traders&#8217; long-to-short ratio at leading crypto exchanges. This metric provides a broader view of traders&#8217; effective net position by gathering data from multiple markets.<\/p>\n<p>It is worth noting that exchanges gather data on top traders differently because there are multiple ways to measure clients&#8217; net exposure. Therefore, any comparison between different providers should be made on percentage changes instead of absolute numbers.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-12\/8d698d28-c702-41b7-bf01-ca7303feded1.jpg\"><figcaption style=\"text-align: center;\"><em>Bitcoin top traders long-to-short ratio. Source: Coinglass<\/em><\/figcaption><\/figure>\n<p>The long-to-short ratio for top Bitcoin traders currently stands at a 1.21 ratio average, down from the 1.39 on Dec. 5. Compared to the 1.59 figure from two weeks ago, this signals that buyers (longs) reduced their exposure by 24%. Once again, the absolute number has less importance than the overall change in the time frame.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-12\/dcbe8743-9c7c-48c9-b527-8d4d8dda6d6f.jpg\"><figcaption style=\"text-align: center;\"><em>Ether top traders long-to-short ratio. Source: Coinglass<\/em><\/figcaption><\/figure>\n<p>Meanwhile, Ether whales and arbitrage desks showed a positive sentiment change from Dec. 5 after the long-to-short moved to 1.16 from 1.0. When comparing the average data from Nov. 25, top Ether traders&#8217; long-to-short have been cut by 20% from 1.43.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Data_shows_Ether_traders_are_more_confident_than_Bitcoin_traders\"><\/span>Data shows Ether traders are more confident than Bitcoin traders<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Current derivatives data favors Ether because the asset currently shows a higher futures basis rate. Furthermore, the improvement on the top traders&#8217; long-to-short since Oct. 5 signals confidence at a delicate period when ETH price is down 16% from its $4,870 all-time high.<\/p>\n<p>Bitcoin investors may be lacking confidence as its price stands 31% below the $69,000 all-time high on Nov. 10. There&#8217;s no way to know whether this is a cause or consequence. Still, judging by the futures premium and long-to-short data Ether seems to have enough momentum to keep outperforming.<\/p>\n<p><em>The views and opinions expressed here are solely those of the <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/noshitcoins\"><em>author<\/em><\/a><em> and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.<\/em><\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/data-shows-pro-traders-are-currently-more-bullish-on-ethereum-than-bitcoin\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Data shows pro traders are currently more bullish on Ethereum than Bitcoin &#8221; Most traders have noticed that Ether (ETH) price has seriously outperformed Bitcoin (BTC) for months now and the ETH\/BTC ratio has rallied more than 230% in 2021 and recently hit a new high at 0.089 BTC on Dec. 9.\u00a0 ETH\/BTC pair&#8230;<\/p>\n","protected":false},"author":1,"featured_media":378870,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMTIvMTY0ODNhMjItYTIzMi00NTM1LTlkOTctYTZkYjFkY2U2Y2ZkLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,74862,74863,74860,75012,82402,74891,75846,75591,74939,75592,73785],"class_list":["post-378869","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-bitcoin","tag-cryptocurrencies","tag-cryptocurrency-exchange","tag-derivatives","tag-ether-price","tag-ethereum","tag-futures","tag-huobi","tag-market-analysis","tag-okex","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/378869","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=378869"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/378869\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/378870"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=378869"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=378869"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=378869"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}