Ether Poised to Outperform Bitcoin According to Bybit

After the United States Nov. 5 presidential election, Ether (ETH) has taken the lead in the cryptocurrency spot and derivative markets, according to a Dec. 2 report by crypto exchange Bybit.

Growing Demand for ETH Options

In November, Ether gained significant traction against Bitcoin (BTC), as reflected by the sharp drops in the ratio between their spot prices. This is evident from Bybit’s November 2024 "Volatility Review," co-created by market researcher Block Scholes.

Growing Momentum

The growing demand for ETH options also indicates that traders are increasingly favoring ETH. As Bybit stated, "traders are increasingly favoring ETH."

Ether’s Outperformance Accelerated

Ether’s outperformance accelerated after US Securities and Exchange Commission Chair Gary Gensler announced plans to step down on Nov. 21, bringing additional momentum and attention to the asset.

Since then, this most recent move has been sustained. As CoinStats reported, Ether’s mounting dominance is clear in spot markets, where the ratio of ETH to BTC has risen from around 0.0325 on Nov. 21 to more than 0.04 as of Dec. 6.

Dominance in Spot Markets

This trend is evident in spot markets, where the ratio of ETH to BTC has increased significantly since Nov. 21. As TradingView data shows:

• The ratio of ETH to BTC was around 0.0325 on Nov. 21.
• By Dec. 6, this ratio had risen to more than 0.04.

Hartmann Capital founder Felix Hartmann believes the pivot from BTC to ETH is a signal that Wall Street is "officially joining the fun" on the "alt rotation."

Bitcoin Funds See Outflows

During the week of Nov. 26, Bitcoin funds saw outflows of $457 million – the first significant outflows since September. In contrast, ETH funds saw inflows of $634 million during the same period.

This trend is confirmed by CoinShares’ Dec. 2 weekly digital asset fund flows report:

• Bitcoin funds saw outflows of $457 million.
• ETH funds saw inflows of $634 million.

Bitcoin’s Crypto Market Dominance Wanes

Overall, Bitcoin’s crypto market dominance has been waning. As CoinStats data shows:

• On Nov. 21, Bitcoin’s dominance was at a high of more than 58%.
• By Dec. 6, this had fallen to less than 52%.

Expecting Volatility

Meanwhile, traders are bracing for a rise in ETH volatility. According to Bybit, options markets experienced a "surge in ETH volatility" that points to a stronger demand for ETH optionality than BTC.

As Bybit noted:

• This is not an unusual dislocation, but rather a return to usual programming for the pair.
• ETH has throughout almost its entire history moved with high correlation to but much larger volatility than BTC.

Conclusion

In conclusion, Ether’s outperformance in the cryptocurrency spot and derivative markets is evident. With growing demand for ETH options and a significant increase in the ratio of ETH to BTC, it seems that traders are increasingly favoring ETH over Bitcoin.

As we head into 2025, it will be interesting to see whether this trend continues or if there are any changes on the horizon. One thing is certain: volatility is expected, and traders should be prepared for a rise in ETH price swings.

References

• Bybit’s November 2024 "Volatility Review"
• Block Scholes’ market research
• CoinStats’ Dec. 2 report
• TradingView data