📢 Hello everyone! Today we are going to talk about the latest developments in the cryptocurrency market, especially about the liquidity changes of Bitcoin (BTC) and Ethereum (ETH). QCP Capital published an interesting article on August 10, revealing the new trends of these two major cryptocurrencies in the market. Let's take a look!

First, QCP Capital pointed out that the liquidity conditions of BTC and ETH have undergone a fundamental shift. Bitcoin is increasingly integrated into the mainstream macro capital market, attracting a lot of attention from investors. Its "digital gold" narrative is very attractive, which makes Bitcoin more attractive in the eyes of investors. Ethereum, on the other hand, seems to be somewhat marginalized and lacks a similar narrative.

However, everyone should not worry too much, this does not necessarily have a negative impact on the price of ETH. As a more speculative and volatile asset, ETH still has its unique market value. QCP Capital observed that the implied volatility spread between BTC and ETH has widened to 20%, or even higher. This means that the current trading strategy can choose to sell BTC volatility and buy ETH volatility, which may bring good returns.

Let's take a look at the situation in options trading. QCP Capital found that BTC and ETH have the same structural bullish trend in options trading. In the past two months, funds have mainly flowed into BTC, especially long-term bullish funds, while ETH funds are mainly concentrated in short-term speculation. This shows that investors are more confident about the future trend of BTC, while the focus on ETH is more on short-term opportunities.

Finally, QCP Capital believes that the trend of BTC this week is a leverage cleanup behavior aimed at preparing for a record high in the fourth quarter. Whether this view will come true, we will wait and see!

Dear readers, what do you think of this liquidity change of BTC and ETH? Which cryptocurrency do you think is more promising in the future performance? Welcome to share your views and insights in the comment area, let us discuss this interesting topic together! 😊

I hope this newsletter can provide you with some valuable information. If you have more insights or questions about the cryptocurrency market, don't forget to leave a message in the comment area! We look forward to interacting with you.