TL;DR
- Bitcoin hit $70K after Trump’s speech, but fell to below $67K due to the US government’s transfer of 30,000 BTC.
- Ethereum has performed relatively well compared to Bitcoin, despite ETF outflows, with a volatility premium of 8%.
- Attention this week will focus on key macroeconomic events, including the FOMC meeting and financial results from major tech companies.
The recent dynamics in the cryptocurrency markets have been marked by significant movements in Bitcoin (BTC) and Ethereum (ETH), driven by key events and changes in market perception.
Following Trump’s euphoric speech, BTC hit a high of $70,000, but this surge was short-lived, with a sharp drop taking it to below $67,000.
This decline is partly attributed to the transfer of 30,000 BTC by the US government, which is reportedly still holding another 39,000 BTC seized in the past.
The news of this transfer generated uncertainty in the market, causing a significant drop in the value of Bitcoin.
In contrast, Ethereum has shown remarkable resilience. Despite consecutive Ethereum ETF outflows, ETH has maintained a solid performance compared to Bitcoin.
Since Trump’s speech, the ETHBTC pair has registered a gain of 5%, reflecting the relative strength of Ethereum in the market.
Ethereum’s volatility premium relative to Bitcoin has also increased to 8% for longer maturities, up from 4% last week, indicating a higher level of uncertainty and expectations of further swings in ETH’s price.
Ethereum’s relatively positive performance can be attributed to the rotation of funds into cheaper ETFs, which could be mitigating the impact of more expensive fund outflows. If daily inflows into Ethereum ETFs stabilize, ETH could experience a significant rally.
QCP Capital analysts recommend accumulating ETH at its current price, as they believe the asset is at a favorable discount and volatility could be a favorable factor in the medium term.
What to expect this week?
This week, attention will focus on several macroeconomic events that could influence the cryptocurrency markets and the economy in general.
Wednesday’s FOMC meeting will be crucial to understanding the direction of US monetary policy.
Financial results from major tech companies such as Apple, Amazon and Meta are also expected, which could impact market sentiment. In addition, Friday’s unemployment report will provide valuable insight into the overall economic health.
In this context, the recommended strategy for investors is to maintain a range-bound outlook for Bitcoin and accumulate Ethereum while it remains at a discounted price.
Analysts suggest buying ETH spot at a 9.0% discount every week as long as the price remains below $3,600, with an expiry of 10 weeks.
This strategy allows you to take advantage of volatility and opportunities in a constantly changing market.
