Ethereum vs. Bitcoin: Why ETH Could See Larger Fluctuations Soon, QCP Reveals
July 30 2024 - 8:01PM
NEWSBTC
Regardless of both their maturity in the market, Bitcoin and
Ethereum rivalry persists. According to recent insights from QCP
Capital, a global digital asset trading firm and market maker,
Ethereum appears to have now shown potential for larger price
fluctuations compared to Bitcoin. QCP reveals that the
volatility premium between these two major cryptocurrencies has
seen a notable increase, with Ethereum leading in potential price
swings. ETH to see Larger Price Swings than BTC Delving further
into the insights shared, QCP Capital disclosed that it has
observed Ethereum’s volatility premium over Bitcoin expanding to
8%, up from 4% just last week. This widening gap, according to QCP
highlights a growing trend where Ethereum is expected to outpace
Bitcoin in terms of price volatility. Particularly, the analysis
suggests that Ethereum could offer more lucrative opportunities for
those willing to capitalise on its market movements. Related
Reading: Ethereum’s Breakout Moment: Here’s Why ETH Could Skyrocket
to $15,000 Soon Furthermore, besides the impending surge in
volatility, Ethereum’s market behaviour continues to diverge from
that of Bitcoin, with its performance holding relatively steady
even amid broader market shifts. Analysts from QCP Capital have
pointed out that despite recent market uncertainties, including
significant movements of Bitcoin by the US government, ETH has
managed to sustain its market position more effectively than its
counterpart. The analysts noted: ETH spot has performed relatively
well compared to BTC following Trump’s speech, with ETHBTC gaining
5% since, despite its fourth consecutive day of spot ETF outflows.
Why the strength in ETH? The market might be becoming immune to
headline outflow figures due to the rotation from more expensive
ETHE to the cheaper ETFs. They note that if the current trend of
outflows from instruments like the Grayscale Ethereum Trust begins
to slow, and inflows into Ethereum ETFs pick up, “could ETH break
significantly higher?” Suggesting a trade idea, the QCP Capital
analysts added: While we maintain a range-trading outlook for BTC
as re-iterated yesterday, we favor accumulating ETH at its current
discount, as volatility has picked up slightly. Ethereum
and Bitcoin Market Performance While both Ethereum and Bitcoin have
seen a negative performance in price over the past week, there
remains a notable difference when being specific. For instance,
over the past week, Bitcoin has decline by 1.4% however, Ethereum
on the other hand has plunged 4.2% over the same period. Meanwhile,
in the past 24 hours, Ethereum has seen an increase of 1.2%
bringing its price to trade at $3,314 while Bitcoin still remains
in the red down by 1.4% over the same period to trade at a price of
$66,292, at the time of writing. Related Reading: Research Firm
Predicts Bitcoin Game Theory In Global Adoption Race According to
prominent crypto analyst Micheal Van De Poppe, the crucial level
for ETH/BTC is 0.0515. If that price mark breaks, Van De Poppe
predicts that then “it’s party time” as this would be the “strong
first signs of the week.” For the first time, since the launch of
the #Ethereum ETF, price rallied back upwards during U.S. hours.
Crucial levels are 0.0515 BTC. If that breaks, it’s party time.
Strong first signs of the week. pic.twitter.com/DysOtKMQpJ —
Michaël van de Poppe (@CryptoMichNL) July 30, 2024 Featured image
created with DALL-E, Chart from TradingView
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