A recent update from QCP Capital has put the cryptocurrency market on high alert as declines in Bitcoin, Ethereum, and the total crypto market cap sparked short-term skepticism among traders. The March 15 update from QCP Capital highlighted concerns about volatility in cryptocurrency markets, particularly as Bitcoin, the leading token, dropped below $66,000 for the first time in nearly two weeks.
Bitcoin (BTC) experienced a decline of over 5% in the last 24 hours, dipping to $65,565 during trading hours. Similarly, Ethereum (ETH) retraced by more than 5%, reaching around $3,566 before showing signs of slight recovery at press time. The total crypto market cap fell to $2.6 trillion, down 4% on the day, as reported by CoinMarketCap.
Analysts at QCP Capital noted that markets were “particularly nervous” due to the valuation correction across the crypto market’s two largest tokens. The firm also highlighted negative risk reversal extending to May, as indicated by large capital investors. Additionally, there has been notable unwinding of calls by institutional players who were previously aggressive buyers of calls during the upward trend.
The market correction in Bitcoin was preceded by rare lackluster interest in spot BTC ETFs on March 14. Data from SoSo Value revealed total net inflows of $132.5 million across 10 tradable funds, with BlackRock leading the way with $345 million in net inflows. However, net outflows of $257 million from Grayscale’s GBTC dampened the influx into BlackRock’s iShares Bitcoin ETF (IBIT). Funds issued by Bitwise, Invesco Galaxy, and WisdomTree reportedly saw $0 net inflows during this period.
The decline in Bitcoin and Ether, coupled with cautious market sentiment, underscores the inherent volatility and unpredictability of the cryptocurrency market. Traders and investors are closely monitoring these developments as they navigate through short-term fluctuations and assess long-term market trends.
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