Analysts at QCP Capital say options traders are less optimistic about Ethereum’s short-term price performance compared to Bitcoin. However, the analysts maintain a positive outlook for the leading altcoin in the medium to long term.
More price action is expected for BTC than ETH in the short term!
Options traders now expect more significant price movements for Bitcoin compared to Ethereum. This reflects a potential shift in short-term market sentiment that favors BTC over ETH. As you have been following on Kriptokoin.com, the highly anticipated trading of spot Ethereum ETFs began on Tuesday. However, after that, the expected market volatility did not materialize.
Analysts at QCP Capital observed that Bitcoin options now have higher implied volatility than Ethereum options. This means that more price action is expected for BTC in the short term. In this context, QCP Capital analysts make the following assessment:
Ethereum volatility has sold off across expiry structures and Ethereum’s front-end Bitcoin vols premium has finally reversed. Bitcoin 1-week and 2-week options are currently trading 1 to 3 percentage points higher than Ethereum.
Ethereum ETFs lag behind Bitcoin ETFs!
The newly launched and highly anticipated spot Ethereum ETFs saw net inflows of over $107 million on the first day of trading, a significant underperformance compared to the $655 million net inflows of spot Bitcoin ETFs on their first day of trading. One of the factors behind the reduced capital flows into Ethereum ETFs was the $484 million outflow from Grayscale’s converted Grayscale Ethereum Trust (ETHE) on the first day of trading. However, QCP Capital analysts maintain a positive outlook for the leading altcoin in the medium to long term. In this direction, QCP Capital analysts make the following statement:
Bitcoin reaching an all-time high two months after the launch of ETHE sets a compelling precedent. With institutional interest expected to continue, the ETH’s price trajectory could gradually approach its previous all-time high.
ETF inflows for the leading altcoin will gradually increase!
BRN analyst Valentin Fournier also suggests that in the medium to long term, positive Ethereum ETF activity could curb the post-launch sell-off and push prices higher. “If the positive spot Ethereum ETF activity continues in the coming days, Ethereum could offset the post-launch ETH sell-off. Thus, ETH could push towards higher levels,” he said.
However, Fournier expects Bitcoin to outperform Ethereum in the near term as increased crypto activity and the impact of Ethereum ETF launch sales on Bitcoin fades.
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