Bybit, the world's second-largest cryptocurrency exchange by trading volume, has released an options volatility report detailing significant differences in volatility between Ethereum and Bitcoin in May 2025.
Historical Volatility of Ethereum and Bitcoin Options
In May 2025, Ethereum options exhibited historically high volatility premiums over Bitcoin, driven by Ethereum's elevated realized volatility during a significant price rally.
Rise of Implied Volatility Ratio between Ethereum and Bitcoin
The Ethereum-to-Bitcoin implied volatility ratio for short-dated options surged past 2x, reaching a nearly five-year high. Concurrently, Bitcoin's realized volatility fell below 35%, breaking a long-standing trend.
Factors Influencing Ethereum's Volatility
Ethereum's standout performance in May was fueled by positive US-UK trade news, rallying over 23% on May 8, while Bitcoin gained approximately 10%.
The Bybit report highlights crucial changes in volatility between Ethereum and Bitcoin, indicating potential continued investor interest in Ethereum amid shifting market conditions.
