Bitcoin (BTC) investors are increasingly betting on price gains via options markets following the Federal Reserve’s latest policy meeting, while Ethereum (ETH) continues to see cautious sentiment reflecting ongoing uncertainty despite the upcoming network upgrade. BTC Options Rise After Fed Meeting The shift in sentiment came after Federal Reserve Chairman Jerome Powell reaffirmed the central bank's forecast of two rate cuts this year and downplayed the inflationary impact of tariffs implemented under the Trump administration, calling them “temporary.” Data from Amberdata shows that Bitcoin’s risk returns have turned positive, meaning traders are now paying a premium for call options (bullish bets) over put options (bearish bets). This marks a significant reversal from previous weeks, when downside fears fueled demand for protective put options. According to Paradigm, an institutional over-the-counter (OTC) trading platform, options flows have seen an increase in demand for call options on March 21 and March 28, while put options were sold off, suggesting that investors are positioning for a potential BTC rally in the coming weeks. The shift in the options market coincides with broader optimism for regulatory clarity in the crypto industry following the conclusion of the SEC’s legal battle with Ripple, which could have positive implications. Ethereum Options Lag as Investors Remain Cautious Unlike Bitcoin, Ethereum’s options market continues to reflect a bias toward downside protection and still commands a premium over calls, particularly for contracts expiring in May. Despite the upcoming Ethereum Pectra update that is expected to increase network efficiency and scalability, traders remain hesitant. The update, which will introduce smart accounts, blob scaling, and validator improvements, is set to go live on March 26, but Ethereum has yet to see any notable changes in sentiment. *This is not investment advice. Continue Reading: Bitcoin Options Soar After FED Meeting! What's the Latest on Ethereum Options? Here Are the Details
