Crypto News: Bitcoin Options Turn Bullish After Powell’s Inflation Remarks, Ether Sentiment Still Lags

Bitcoin (BTC) options traders are shifting towards bullish bets following the Federal Reserve’s latest policy decision, while Ethereum (ETH) options remain cautious despite the upcoming Ethereum Pectra upgrade.Key Takeaways:Bitcoin options flipped bullish as investors bet on price gains after the Fed meeting.The Federal Reserve retained its forecast for two rate cuts in 2025 but will slow balance sheet runoff starting April.Chairman Jerome Powell downplayed concerns over inflation caused by Trump’s tariffs, calling the impact “transitory.”XRP sentiment improved following the conclusion of Ripple’s SEC case, supporting broader market confidence.Ether options maintain a bearish bias, with puts remaining pricier than calls despite the Pectra upgrade set for March 26.Bitcoin Options Show Renewed Bullish SentimentBTC’s short- and long-term risk reversals—which measure the demand for call options (bullish) versus put options (bearish)—have flipped positive. This shift indicates renewed confidence in Bitcoin’s price potential.Key Observations:Prior to the Fed meeting, Bitcoin options were bearish, with puts (bets on price declines) more expensive than calls.Now, investors are buying BTC calls for March 21 and March 28 expiries, signaling expectations for further upside.Institutional trading data from Paradigm confirms that 28 March put options were sold while near-term calls were actively bought.Fed Policy Supports Bitcoin’s Bullish OutlookThe Federal Reserve maintained its projection of two rate cuts in 2025, reducing fears of aggressive monetary tightening. More importantly, Powell dismissed concerns about inflation from Trump’s trade tariffs, calling them temporary.A slowdown in balance sheet runoff from April could improve liquidity conditions, historically favorable for Bitcoin.XRP sentiment strengthened after Ripple settled its SEC case, further boosting confidence in crypto markets.Ethereum Sentiment Still Lags Despite Pectra UpgradeUnlike Bitcoin, Ethereum’s options market remains cautious, with short- and near-dated puts still holding a premium over calls.Traders continue to hedge downside risks in ETH and altcoins, suggesting skepticism despite the upcoming Ethereum Pectra upgrade on March 26.Pectra aims to introduce key enhancements, including smart accounts, blob scaling, and validator UX improvements, yet ETH derivatives traders remain defensive.Ethereum’s role as the altcoin market leader means its weaker sentiment may be dragging down the broader altcoin market.Market Outlook: Bitcoin Leads, Ethereum LagsWith Bitcoin options flipping bullish and Fed policy favoring risk assets, BTC appears positioned for further gains. However, Ethereum traders remain cautious, likely waiting for stronger fundamental catalysts before turning bullish.As the Pectra upgrade nears and macro conditions stabilize, ETH sentiment could improve, but for now, Bitcoin continues to lead the crypto market recovery, according to CoinDesk.