Blockchain
QCP Sees Ethereum as a Safer Bet Amid Bitcoin Stagnation
QCP, a well-known trading firm, has shared key observations on the cryptocurrency market. Bitcoin’s struggle to surpass the $70,000 mark has led QCP to predict Selling pressure continues, with BTC likely to remain in a tight trading range. Meanwhile, Ethereum (ETH) is seen as a more promising investment, with potential gains as ETH could catch up with BTC, driven by reduced outflows from ETHE.
Read on to find out how you can profit from it.
Bitcoin’s Struggle: The $70,000 Barrier
For the sixth time in a row, BTC has failed to break the $70,000 mark. Bitcoin is at $66,048 after a sharp decline. Many investors have sold Bitcoin to capitalize on the rising values, causing a dramatic decline. The market is becoming more skeptical about Bitcoin’s bull run, with some investors lowering their expectations.
Despite the ongoing sell-off from Mt. Gox and the US government, the ETF market remains bullish. There is a noticeable bias towards Ethereum (ETH) ETFs as big bulls have started investing in ETFs, indicating bullish sentiment for ETH.
QCP Telegram Update highlightedhigh market volatility. The NASDAQ is down 10% from its peak, influenced by a pullback in major technology stocks. FX carry trades are unwinding and the VIX, a measure of market volatility, is up to 19.50.
The main catalysts driving this uncertainty include Value at Risk (VaR) shocks, high equity valuations and a global risk-off sentiment. Commodities such as oil and copper have also fallen due to fears of an economic slowdown.
Additionally, QCP expects increased market volatility ahead of the upcoming FOMC meeting, highlighting the importance of the Federal Reserve statement and Jerome Powell’s subsequent press conference.
Bright side
QCP notes a positive development in the cryptocurrency space with an inflow of $33.7 million into ETH spot ETFs, providing a much-needed boost to ETH prices. However, they expect continued outflows from ETHE in the coming weeks. The recent moves of Silk Road BTC by the US government have added uncertainty to the market.
QCP suggests a strategic trade involving BTC, which is likely to remain in its current range, while ETH offers a more promising opportunity. They suggest a trade targeting a range between $4,000 and $4,500 for ETH, which could yield a 5.5x return by August 30, 2024.