Derive Market Insights: May 27th 2025

Derive.xyz News Alert: BTC and ETH Hold Steady Amidst Gamma Dynamics

May 27, 2025 By Nick Forster

BTC's rally has stalled slightly, holding firm at $109,000, while ETH remains steady at $2,550. Volatility for both assets has stayed consistent, with BTC at 45% and ETH at 72%.

Short-term, traders are anticipating a move upwards, evidenced by a large buy-up of calls on the $112K BTC strike for May 30. However, expectations for BTC to remain below $110K by June 27 are also building, with a significant number of calls sold for that expiry.

Market makers remain short gamma, meaning that as BTC and ETH rise, they are forced to buy more to hedge, potentially triggering a short-term price spike.

Projected outlook:

There’s a 10% chance of BTC surpassing $130K by the end of June, while ETH has a 15% chance of exceeding $3,100 by the end of June.

On Derive.xyz, BTC traders are positioning for a move upward while capitalizing on cheap volatility. Over the past 24 hours, 55.6% of premiums traded were calls bought, with 22.3% puts purchased.

BTC option premium breakdown over the last 24 hours

Source: Derive.xyz, Amberdata

For ETH, the distribution is more balanced, suggesting a more uncertain outlook and fairly priced volatility.

ETH option premium breakdown over the last 24 hours

Source: Derive.xyz, Amberdata