Ethereum Liquidity Drop with a Bitcoin Price Rebound
- 王林Original
- 2024-08-10 18:14:26904browse
In a significant recovery, the top crypto token Bitcoin has seen a price rebound to rise beyond the $60,000 spot. While Bitcoin jumps from a dip to $49,000
Bitcoin price rebounds notably and now trades above the $60,000 level. As Bitcoin recovers from a dip to $49,000, Ethereum is facing a liquidity shift, losing ground against the leading crypto. A post by QCP Capital analyzes the current market statistics.
Ethereum Liquidity Drop As Bitcoin Price Rebounds
The post highlights a massive liquidity shift of Ethereum in comparison with Bitcoin, which raises concerns. According to QCP Capital, this shift contributes to the mainstream adoption of Bitcoin in the big capital markets. In this regard, Bitcoin is gaining ground as “digital gold.”
A clear evidence of this shift emerged on Monday as ETH faced a 22% dip while BTC saw a 16% decline. Notably, Bitcoin accumulation reached new peaks in July and people also bought the dip heavily during the first week of August.
However, this shift in the liquidity drop doesn’t necessarily spell doom for Ethereum. Being a more volatile and speculative asset, ETH’s tendency toward higher gains remains intact.
The disparity in implicit volatility between ETH and BTC has now reached around 20%, which could increase further. In this scenario, a strategy could be to sell Bitcoin volatility and buy ETH volatility.
Trending Now: Bitcoin Recovery Hinges on Renewed Trader Demand
This would help capitalize on the respective differences. Despite the volatility, bullish sentiment for Bitcoin remains strong. Throughout the 7 days, there was a consistent demand for Bitcoin call options expiring in 2025 and simultaneously approaching strike prices of $100,000.
The demand for Bitcoin’s value in the long term shows strong confidence from institutional investors.
QCP Capital Recommends A Trading Strategy for 236.3% Annual Return
Considering this, investors believe in Bitcoin’s digital gold status. In line with the leverage washout a few days back, QCP Capital suggests a bullish trading strategy.
The platform suggests the strategy called “the BTC Zero-Cost ERKO Seagull.” The strategy involves the sale of a $50,000 put for the purchase of a $75,000 call at a $120,000 knock-out. The platform anticipates a 236.3% annual return on the respective trade.
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