DUBAI, UAE, June 17, 2025 /PRNewswire/ — Bybit, the world’s second-largest cryptocurrency change by buying and selling quantity, launched a brand new choices volatility report in collaboration with Block Scholes. The report exhibits a historic volatility divergence between Ethereum (ETH) and Bitcoin (BTC) throughout Could 2025.
Key Highlights:
- In Could 2025, ETH choices exhibited traditionally excessive volatility premiums over BTC, pushed by ETH’s elevated realized volatility throughout a significant value rally.
- The ETH-to-BTC implied volatility ratio for short-dated choices surged previous 2x — reaching an almost five-year excessive.
- BTC’s realized volatility fell beneath a long-standing 35% ground, breaking a 19-month development.
- ETH’s volatility time period construction confirmed persistent inversion, with shorter-dated choices pricing larger volatility than longer-dated ones.
- The implied volatility divergence coincided with ETH’s outperformance, which included a 23% intraday rally amid key market occasions.
ETH-to-BTC Implied Volatility Expands to 5-Yr Excessive
In Could 2025, a notable dislocation in implied volatility emerged between ETH and BTC choices. Implied volatility displays market expectations for future value motion over an possibility’s lifespan. At first of the month, the ETH-to-BTC implied volatility ratio for 7-day choices hovered round 1.5 — indicating that ETH choices had been priced with 50% larger anticipated volatility than BTC choices.
By Could 16, the ratio climbed above 2x, reaching a peak not seen since 2020, as BTC’s implied volatility declined to its lowest ranges since October 2023. This drop in BTC volatility broke beneath the 35% ground that had held for over 19 months, whereas ETH’s short-tenor implied volatility remained elevated, although barely beneath its Could 10 excessive. The volatility unfold was significantly pronounced within the 30-day tenor, reaching its widest level since mid-2022.
Realized Volatility Tendencies Underscore the Divergence
The sharp divergence in implied volatility was strengthened by traits in realized volatility — a measure of precise historic value motion. In Could, ETH’s realized volatility considerably outpaced BTC’s throughout varied tenors, fueling expectations for continued dispersion between the 2 belongings.
On Could 15, the 7-day realized volatility ratio between ETH and BTC peaked, carefully adopted by the implied volatility ratio — suggesting market members anticipated ETH’s larger volatility to persist. This development isn’t new: the ETH-BTC volatility ratio has been climbing steadily since July 2024, amid each bull runs and durations of market stress.
ETH’s standout efficiency in Could was catalyzed by a number of components, together with optimistic US-UK commerce information. ETH surged greater than 23% on Could 8 alone and continued to outperform BTC, which gained roughly 10% throughout the identical interval. Regardless of this momentum, ETH remained over 50% beneath its January 2025 peak and its all-time excessive.
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