Options market data shows traders are hedging potential downside risks, and ETH Fluctuation will intensify further

BlockBeats news, on January 15th, according to The Block, as Donald Trump prepares for his second inauguration ceremony on January 20th, the BTCDerivatives market has shown an increased expectation for volatility. Data from the Derive.xyz derivatives trading platform indicates signs of bearish expectations in the medium term. BTC put options have increased to 40% of all open contracts on Derive.xyz that have not been closed, rising significantly in the past week. Sean Dawson, Director of Research at Derive.xyz, stated that this indicates traders are hedging potential downside risks as Trump's inauguration approaches. The implied volatility of BTC is also continually rising, highlighting market uncertainty. Over the past week, the 7-day IV of BTC has increased by 3% to 56.5%, while the 30-day IV has increased by 1.5% to 57.5% currently. Sean Dawson stated that these trends indicate a growing expectation for significant fluctuations in price in the days leading up to the inauguration. Ethereum traders have an even stronger expectation for volatility. In the past 24 hours, the 7-day IV of Ethereum has surged by 6% to 74%, while the 30-day IV has increased by 2.5% to 69.5%. Dawson explained, "This difference indicates that Ethereum traders expect greater short-term volatility, possibly because Ethereum is more sensitive to macroeconomic changes and post-inauguration policies. Compared to BTC, the Ethereum market is preparing for more severe short-term fluctuations."