According to BlockBeats, QCP Capital said that the liquidity situation of ETH relative to BTC has undergone a fundamental shift. BTC is increasingly integrated into the mainstream macro capital market, but ETH is increasingly marginalized.
BTC’s digital gold narrative attracts investors, while ETH lacks such a narrative. However, this does not necessarily have a negative impact only on ETH prices. The implied volatility spread between BTC and ETH has widened to 20% or even higher.
The current trading strategy may choose to sell BTC volatility and buy ETH volatility. In option trading, BTC has the same structural bullish trend as ETH, and funds mainly flow into BTC, especially long-term bullish funds, while ETH funds are mainly concentrated in short-term speculation.
QCP Capital believes that BTC’s move this week is a leverage cleanup to set a new all-time high in the fourth quarter.
