Bitcoin’s structural bullishness grows as Ethereum loses ground
The post Bitcoin’s structural bullishness grows as Ethereum loses ground appeared on BitcoinEthereumNews.com.
Bitcoin is flexing its muscles, sitting comfortably above $60,000 after one hell of a week. Last Monday, BTC took a brutal hit, dropping to $49,000—a stomach-churning dip that had traders and investors on edge. But in a remarkable recovery, Bitcoin quickly clawed its way back, barely breaking a sweat. In contrast, Ethereum, once touted as the next big thing, is starting to show cracks in its armor. According to QCP Capital analysts, there’s been a noticeable change in the market. While Bitcoin continues to make waves, Ethereum is being sidelined. Ethereum’s liquidity problem and Bitcoin’s dominance Ethereum’s liquidity is drying up. The big players in the market are losing interest, especially when it comes to spot ETFs. Bitcoin, on the other hand, is enjoying all the attention. New investors are buying into the “digital gold” narrative that Bitcoin offers, while Ethereum is struggling to keep up. This became painfully clear on Monday when Ethereum’s price plummeted 22%, compared to BTC’s more modest 16% drop. But of course this doesn’t mean Ethereum is dead in the water. Ethereum is a different beast—more volatile, more speculative. While Bitcoin is seen as a stable store of value, Ethereum’s volatility brings with it the potential for massive gains. Before the recent ETF debacle, the difference in implied volatility between BTC and Ether was about 5%. Now, that gap has widened to nearly 20%, and it could get even bigger. For those who like to play the markets, this opens up a strategy: sell Bitcoin volatility, buy Ethereum volatility. Bitcoin’s bullish momentum is structural. Throughout the week, even with the wild price swings, there’s been a steady demand for options, especially those expiring in 2025. Traders are eyeing strikes closer to $100,000, and this isn’t retail money talking—this is institutional cash. Current market sentiment Bitcoin’s…
Filed under: News - @ August 10, 2024 5:24 pm