Regardless of how mature each of them is in the market, the competition between Bitcoin and Ethereum is still ongoing. According to recent reports, ideas According to QCP Capital, a global digital asset trading firm and market maker, Ethereum now appears to have shown greater potential for price volatility than Bitcoin. QCP reveals that the volatility premium between the two major cryptocurrencies has increased significantly, with Ethereum leading the way in potential price volatility.
ETH is expected to experience greater price volatility than BTC.
Digging deeper into the shared insights, QCP Capital revealed that it has observed Ethereum’s volatility premium over Bitcoin expanding to 8%, up from 4% just last week. According to QCP, this widening gap highlights a growing trend where Ethereum is expected to outperform Bitcoin in terms of price volatility. In particular, the analysis suggests that Ethereum could offer more lucrative opportunities for those looking to capitalize on its market movements.
Related Reading: Ethereum’s Moment of Inception: Here’s Why Ethereum’s Price Could Hit $15,000 Soon
Furthermore, in addition to the impending spike in volatility, Ethereum’s market behavior continues to differ from that of Bitcoin, with its performance remaining relatively steady even amid broader market shifts. Analysts at QCP Capital noted that despite recent market uncertainty, including the U.S. government’s large moves against Bitcoin, Ethereum has managed to hold its ground more effectively than its counterpart.
Analysts pointed out:
Spot ETH has performed relatively well compared to BTC following Trump’s speech, with ETHBTC gaining 5% since then, despite a fourth straight day of spot ETF inflows. Why the strength in ETH? The market may have become immune to major outflow numbers due to the rotation from more expensive ETHE to cheaper ETFs.
They noted that if the current trend of outflows from instruments like the Grayscale Ethereum Trust starts to slow, and inflows into Ethereum ETFs pick up, “could ETH rally significantly?”
In a business case proposal, QCP Capital analysts added:
While we maintain a range-bound trading outlook for Bitcoin as we reiterated yesterday, we prefer to accumulate Ethereum at its current discount, as volatility has picked up slightly.
Ethereum and Bitcoin Market Performance
While both Ethereum and Bitcoin have seen negative price performance over the past week, there is a notable difference when it comes to quantifying it. For example, over the past week, Bitcoin has fallen by 1.4%, while Ethereum, on the other hand, has fallen by 4.2% over the same period.
Meanwhile, Ethereum has seen a 1.2% increase over the past 24 hours to $3,314, while Bitcoin remains in the red, down 1.4% over the same period to trade at $66,292, at the time of writing.
According to prominent crypto analyst Michael van de Poppe, the crucial level for the ETH/BTC pair is 0.0515. If this price level is broken, van de Poppe predicts that “party time” will be “the first strong sign of the week.”
For the first time since the launch #Ethereum The fund’s price rose again during US trading hours.
The crucial levels are 0.0515 BTC. If this level is broken, it means it’s party time.
Strong first signs for this week. pic.twitter.com/DysOtKMQpJ
— Michael van de Poppe (@CryptoMichNL) July 30, 2024
Featured image created using DALL-E, chart from TradingView
