Regardless of the maturity of both in the market, the rivalry between Bitcoin and Ethereum persists. According to a recent perceptions From QCP Capital, a global digital asset trading and market making firm, Ethereum now appears to have shown potential for greater price fluctuations compared to Bitcoin. QCP reveals that the volatility premium between these two major cryptocurrencies has seen a notable increase, with Ethereum leading the way possible price fluctuations.
ETH will see bigger price swings than BTC
Digging deeper into the insights shared, QCP Capital revealed that it has observed Ethereum’s volatility premium over Bitcoin expanding to 8%, up from 4% last week. This widening gap, according to QCP, highlights a growing trend where Ethereum is expected to outpace Bitcoin in terms of price volatility. In particular, the analysis suggests that Ethereum could offer more lucrative opportunities for those willing to capitalize on its market movements.
Related Reading: Ethereum Breakout Momentum: Here’s Why ETH Could Skyrocket to $15,000 Soon
Furthermore, in addition to the impending increase in volatility, Ethereum’s market behavior continues to diverge from that of Bitcoin, with its performance remaining relatively stable even amid broader market changes. Analysts at QCP Capital noted that despite recent market uncertainties, including significant Bitcoin moves by the U.S. government, ETH has managed to sustain its position in the market more effectively than its counterpart.
Analysts noted:
Spot ETH has performed relatively well compared to BTC following Trump’s speech, with ETHBTC gaining 5% since then despite the fourth consecutive day of spot ETF outflows. Why the strength in ETH? The market may be becoming immune to major outflow numbers due to the rotation from more expensive ETHE to cheaper ETFs.
They note that if the current trend of outflows from instruments like the Grayscale Ethereum Trust begins to slow and inflows into Ethereum ETFs increase, “could ETH rally significantly?”
Suggesting a trading idea, QCP Capital analysts added:
While we maintain a range trading outlook for BTC as reiterated yesterday, we favor accumulating ETH at its current discount as volatility has increased slightly.
Ethereum and Bitcoin Market Performance
Although both Ethereum and Bitcoin We saw negative price performance last week, yet there is a notable difference when it comes to specifics. For example, last week, Bitcoin fell by 1.4%, however, Ethereum, on the other hand, fell by 4.2% in the same period.
Meanwhile, in the last 24 hours, Ethereum has seen a 1.2% increase, bringing its trading price to $3,314, while Bitcoin still remains in the red, falling 1.4% in the same period, to trade at a price of $66,292, at the time of writing.
According to prominent crypto analyst Micheal Van De Poppe, the crucial level for Ethereum/BTC is 0.0515. If this price mark breaks, Van De Poppe predicts that “it’s party time” as this would be the “strong first signs of the week.”
For the first time since the launch of #Ethereal ETF, the price rose again during US hours.
Crucial levels are 0.0515 BTC. If that breaks, it’s party time.
Strong first signs of the week. pic.twitter.com/DysOtKMQpJ
-Michaël van de Poppe (@CryptoMichNL) July 30, 2024
Featured image created with DALL-E, chart from TradingView