Ethereum Price Surges Among Top Crypto Gainers as SEC Chair Gary Gensler Departs

Bybit, in collaboration with Blocks Scholes, released its
latest weekly derivatives analytics report, revealing that Ethereum (ETH) has
recently surpassed Bitcoin (BTC) in key trading metrics.

According to CoinMarketCap, Ethereum is among the top
gainers in the cryptocurrency market. This surge in ETH’s performance is
attributed to news regarding US SEC Chair Gary Gensler’s upcoming departure at
the end of the Biden administration’s term.

Investors are optimistic about a
potentially more crypto-friendly SEC Chair after Gensler’s exit on January 20,
2025.

Ethereum Surpasses Bitcoin in Trading Volume

The report highlights that ETH has outperformed BTC in open
interest. Data shows a decline in open interest for BTC perpetual contracts,
while ETH’s open interest has been on the rise.

Over the past six months, ETH has also captured a larger
share of daily trading volumes, despite a slower market overall this week. This
shift suggests growing interest in Ethereum as investors anticipate less
regulatory scrutiny in the near future.

Earlier, The US
SEC confirmed Gensler’s departure, as reported by Finance Magnates coinciding with
Donald Trump’s inauguration. Gensler, known for his strict crypto regulations,
faced challenges during his tenure, including the GameStop saga. Despite
criticism, the SEC credited him with reforms aimed at improving market
efficiency and transparency.

Securities and Exchange Chair Gary Gensler will leave on January 20, giving Trump the ability to install a new leader (as the incoming admin talks up crypto) on day 1 pic.twitter.com/GJMetVJvRP

— brian cheung (@bcheungz) November 21, 2024

CoinMarketCap data shows that Ethereum’s market cap stands
at $428.06 billion, securing the number two spot, just behind Bitcoin.

BTC Price Decline Leads to Flattened Volatility

On the other hand, BTC
has seen a decline in price from its previous high of $100K. This has led
to a flattening of the ATM volatility term structure, with short-term options
dipping below 60%. This drop in BTC’s volatility reflects a broader trend
observed since the US election. While open interest in calls and puts remains
steady, the demand for short-term options has stagnated.

In terms of options, ETH shows slightly more bullish
sentiment than BTC. Despite market recalibration following the post-election
highs, call options for ETH continue to lead in both trading volumes and open
interest.

This article was written by Tareq Sikder at www.financemagnates.com.