Market Wrap: Bitcoin Hits $10.9K; Ether Options Signal Short-Term Volatility

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Sep 28, 2020 at 20:16 UTCUpdated Sep 28, 2020 at 20:17 UTC.An early rally Monday almost pushed bitcoin over $11,000; the ether options market expects volatility in the short term.

Bitcoin trading around $10,874 as of 20:00 UTC. Gaining 1% over the previous 24 hours.

"In a sign of strength, bitcoin price has held above $10,000 for 63 days now," said David Lifchitz, chief investment officer for quant trading firm ExoAlpha.

Despite the bullish sentiment, not all traders think bitcoin can get past $11,000.

"After the pause BTC took for the weekend, bitcoin is currently on a bullish impulse," said Alessandro Andreotti, an Italian over-the-counter crypto trader.

Open interest in bitcoin futures, in particular, remains flat Monday.

The second largest cryptocurrency by market capitalization, ether, was up Monday trading around $362 and climbing 2.3% in 24 hours as of 20:00 UTC.Volatility skew is a measure options traders monitor for placing bets at various expirations.

The 1-month 25-day volatility skew for ether has been in positive territory for most of September after closely following the 3-month and 6-month for the better part of the past three months, which suggest volatility in the near future.

256 Capital Partner's Leow says DeFi has contributed to increasing short-term volatility in ether.

Vishal Shah, an options trader and founder of derivatives exchange Alpha5, says this indicator signals options traders would have different strategies depending on expiration since short-term ether volatility is expected to continue.

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