Bitcoin Is Holding Firm, Ethereum Is Pulling In Money: Here’s What Crypto Positioning Shows
Bitcoin briefly dropped to $76,700 after the latest inflation data before recovering toward $78,000. According to QCP Capital, this “contained” reaction is a sign that markets have largely absorbed the prospect of a 25-basis-point rate hike.
The firm explained that $BTC’s technical setup remains constructive at current levels, although conviction is still dependent on the broader market response to this week’s events.
Two Very Different Bets
Bitcoin is trading above a major support zone at $75,000 to $76,000 while resistance stands at $80,000 to $82,000. Ethereum is showing a significantly different flow picture. Spot $BTC ETFs recorded $462.7 million in net outflows during the holiday-shortened week. However, Friday’s withdrawal slowed sharply to $13.2 million compared with $282.7 million on Thursday.
Ethereum ETFs, meanwhile, recorded nearly $197 million in net inflows for the week. Friday’s $216.4 million influx helped drive the weekly total higher despite earlier outflows. QCP Capital said that the divergence indicated differentiated positioning between the two crypto assets. Ethereum is facing resistance at $2,500 to $2,550, while support sits at $2,400 to $2,425, and a secondary support zone is located at $2,300 to $2,350.
$BTC $ETH
Bitcoin volatility also remains relatively low. QCP Capital stated that the volatility curve is still upward sloping while the 25-delta risk reversal is around negative 3 volatility points. Puts are therefore moderately more expensive than calls, even as positioning remains well below stressed levels. The firm added that traders are staying hedged rather than taking a strong directional position.#FedHikeOddsRiseTo89%
Bitcoin briefly dropped to $76,700 after the latest inflation data before recovering toward $78,000. According to QCP Capital, this “contained” reaction is a sign that markets have largely absorbed the prospect of a 25-basis-point rate hike.
The firm explained that $BTC’s technical setup remains constructive at current levels, although conviction is still dependent on the broader market response to this week’s events.
Two Very Different Bets
Bitcoin is trading above a major support zone at $75,000 to $76,000 while resistance stands at $80,000 to $82,000. Ethereum is showing a significantly different flow picture. Spot $BTC ETFs recorded $462.7 million in net outflows during the holiday-shortened week. However, Friday’s withdrawal slowed sharply to $13.2 million compared with $282.7 million on Thursday.
Ethereum ETFs, meanwhile, recorded nearly $197 million in net inflows for the week. Friday’s $216.4 million influx helped drive the weekly total higher despite earlier outflows. QCP Capital said that the divergence indicated differentiated positioning between the two crypto assets. Ethereum is facing resistance at $2,500 to $2,550, while support sits at $2,400 to $2,425, and a secondary support zone is located at $2,300 to $2,350.
$BTC $ETH
Bitcoin volatility also remains relatively low. QCP Capital stated that the volatility curve is still upward sloping while the 25-delta risk reversal is around negative 3 volatility points. Puts are therefore moderately more expensive than calls, even as positioning remains well below stressed levels. The firm added that traders are staying hedged rather than taking a strong directional position.#FedHikeOddsRiseTo89%
