Quiet Summer Ahead For Bitcoin, But Ethereum Holds Potential for Surprise — QCP Capital
June 14 2024 - 11:00PM
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According to the latest report by QCP Capital, options data reveals
a plunge in trading volatility, particularly for Bitcoin, meaning
cryptocurrency traders could be in for a tamer summer. The research
firm, which is well known for spotting new market trends, points
out that the data patterns in the charts suggest that we are likely
to have a more shallow trading period for now. This comes as the
market is still recovering from recent highs and lows, consigning
traders in limbo trying to make sense of the next big play. Related
Reading: Is The Crypto Surge Over? Bitcoin Stalls At $72,000 As
Investor Enthusiasm Wanes Ethereum Is In For An Active Summer
Despite Anticipated Market Lull The one exception is that the
Ethereum options show significantly higher implied volatility than
that of Bitcoin. This suggests that although the market, in
general, could cool off, Ethereum could still see a relative surge
in trade. In their report, QCP Capital advised traders to consider
accumulation strategies, particularly for Ethereum, in preparation
for what they term “the long, quiet summer.” This approach could be
beneficial if the market maintains its predicted low volatility.
Additionally, they do not foresee any significant price movements
for Ethereum in July, aligning with the expectations set around the
potential approval of a spot Ethereum spot Exchange-traded funds
(ETFs later in the summer. However, the speculation surrounding the
approval of an Ethereum spot ETF is creating a buzz, with traders
eyeing the S-1 Form approval that could bring more action to
Ethereum’s market. Ethereum’s implied volatility currently stands
at a 10 vol premium to Bitcoin, which QCP analysts expect to narrow
as the market begins to price in the anticipated US spot ETF
approval. This suggests that while the summer might be quieter,
there could still be critical developments that could influence
market dynamics in the latter part of the season. Bitcoin & ETH
Market Performance And Sentiment Reflecting on recent market
performance, Bitcoin and Ethereum have shown noticeable declines.
After a bullish phase spurred by the US SEC’s approval of spot
Ethereum ETFs last month, cryptocurrencies have closely mirrored
each other in market downturns. Related Reading: Analyst Who
Correctly Predicted Bitcoin’s Surge And Crash Reveals Where Price
Is Headed Next Over the past week, Ethereum has seen a significant
8.5% decline, with a 1.4% drop in just the past 24 hours.
Similarly, Bitcoin has experienced a 1.4% decrease today,
continuing a week-long downtrend that brought its price below
$66,000. In light of these fluctuations, Bitcoin maximalist Samson
Mow has made intriguing predictions about potential market
movements. According to Mow, the likelihood of Bitcoin experiencing
a significant price surge—or what he refers to as an “Omega
candle”—is increasing as market pressure builds up. The #Bitcoin
coil is super compressed now. The longer we go without a Godzilla
candle, the more likely it is to get an Omega. — Samson Mow
(@Excellion) June 13, 2024 Featured image created with DALL-E,
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