- For the first quarter of 2023, he estimated total contracts for BTC and ETH are at 32,000, with the monthly average somewhere around 10,666.
- The BTC-ETH price correlation and movement suggest that Bitcoin can continue this rally going ahead in Q2 2023.
The first quarter of 2023 has been pretty mind-blowing for crypto investors after a brutal crypto winter last year in 2023. The world’s largest cryptocurrency Bitcoin (BTC) has gained more than 70% over the last three months while Ethereum (ETH) has also gained close to 50%.
Amid this massive surge in spot prices, the market has also witnessed a record interest in options as well as trading activity in BTC and ETH. As per the data from the CME Group, both contracts have reached a new milestone.
As of March 27, the open interest rates reached a record 15,089 contracts. For the first quarter of 2023, the estimated total contracts are at 32,000, with the monthly average somewhere around 10,666.
Comparing the year-over-year growth, by the end of the first quarter of 2022, the open interest in the two largest digital assets was an estimated average of 2,000. Therefore, there’s an apparent growth of 430% year-over-year (YoY).
Courtesy: CME Group
The surge in the options interest coincides with an overall positive trend in the crypto space and the broader market recovery. From January 1, 2023, the broader crypto market has surged by 32% adding a total of $373.07 billion and now shooting past $1.19 trillion. Despite this strong recovery, the broader crypto market cap is still down more than 45% from the peak of $2.16 trillion recorded in Q1 2022.
Further Bitcoin Price Rally Ahead?
Earlir this week on Wednesday, March 29, the world’s largest cryptocurrency registered a strong move all the way to $29,000, however, didn’t close above the resistance levels of $28,600. If the BTC price breaks past this resistance, it will open the gates for a move in the range between $29,000-$32,000.
However, one metric that investors can closely watch is the correlation between the Bitcoin and the Ethereum prices. As we can see, Bitcoin has clearly outperformed Ethereum so far in 2023. During the first quarter of the year, while the BTC price surged by a staggering 70%, Ethereum (ETH) on the other hand has gained somewhere close to 50%.
Crypto market enthusiats have always seen the correlation between these two cryptocurrencies as an important factor as an important factor in driving the market ahead.
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As of March 31, the trackers shows that the average trading volumes for BTC and ETH stand somewhere at $19.7 billion and $8.4 billion, respectively. A number of factors will play role in determining the price movements for the two cryptocurrencies during the next quarter.
This includes the developments in the global macros and the Fed’s stand attend with monetary tightening measures.
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