QCP Capital reports that Bitcoin (BTC) has shown a strong recovery this week, stabilizing above the $60,000 range after a sharp drop below $50,000 on Monday. In contrast, the firm highlights a significant liquidity shift in Ethereum (ETH), raising concerns about its current market standing.
According to a recent brief from QCP Capital, Bitcoin has demonstrated remarkable resilience, recovering swiftly from Monday’s sharp decline to maintain a position above $60,000. The report emphasizes the increasing integration of Bitcoin into mainstream macrocapital markets, reinforcing its narrative as “digital gold.”
QCP states, “Bitcoin as digital gold is a compelling narrative to investors while Ethereum is lacking one.” This liquidity shift became evident when Ethereum plummeted 22% compared to Bitcoin’s 16% drop on Monday.
Market analysts at QCP observed consistent demand for Bitcoin options, particularly those expiring in 2025 with strike prices nearing $100,000. This sustained interest indicates a bullish outlook among institutional investors, even amid recent market volatility. As of Saturday morning, Bitcoin was hovering just below the $61,000 mark.
In contrast, QCP’s analysis highlights challenges facing Ethereum as its liquidity profile diverges from that of Bitcoin. The gap in implied volatility between the two cryptocurrencies has widened significantly, with ETH’s volatility surpassing BTC’s by nearly 20%, up from a previous 5% difference.
QCP analysts attribute this shift to the underperformance of ETH spot ETFs compared to BTC ETFs, leading to diminished investor interest in Ethereum. However, they note that ETH’s higher volatility may offer opportunities for speculative gains, despite its susceptibility to substantial drawdowns. As of the latest update, Ethereum was priced at approximately $2,637 per coin.
Despite the tumultuous week, the overall cryptocurrency market has regained substantial ground, with Bitcoin even hitting an intraday high of nearly $63,000 on Friday. Ethereum was trading above $2,700 earlier in the day, but it remains on track for its worst week in nearly two years.
The market cap of all tokens combined has recovered hundreds of billions of dollars since Monday, now comfortably above $2.1 trillion.
