Bitcoin and altcoin markets have been experiencing a significant downtrend recently. While this situation makes investors nervous, different opinions are put forward about what will happen in the markets. A report published by the cryptocurrency trading firm QCP Capital states that the declines in the markets may deepen in the short term. However, it is predicted that prices may reach higher levels by next year.
Bitcoin and altcoin comment from QCP Capital
QCP Capital recently shared a report. Although the company predicts a decline for cryptocurrencies in the short term, it expects an increase in the long term. The report states that factors such as tensions between Iran and Israel and sales in the NASDAQ index in the USA negatively affect the markets. On the other hand, the report also states that serious purchases in Bitcoin and Ethereum continued in the option markets until March 2025 and the funding rates in the market decreased.
QCP Capital analysts argue that this could be an opportunity to buy the dip, especially in Bitcoin and Ethereum. Analysts add that the $55,000 level in Bitcoin may be one of these opportunities. QCP Capital’s analysts also issued a warning for the Ethereum market. Analysts suggest that current conditions in Ethereum futures could trigger significant volatility in the near future.
“Short gamma” position is critical in Ethereum
According to analysts, the market is in a “short gamma” position in Ethereum, that is, a near-dated options position. This means that a sharp move in both directions will be strengthened. This means that the market is sensitive to price changes and can react strongly to any significant movement. Analysts also note that there is a strong pessimistic expectation regarding ETH price movements in the short term. “Ethereum risk returns have turned very negative at -12% at the forefront, indicating tense sentiment,” they added.
“Risk reversal trades” showed indicators that, according to analysts, point to a bearish outlook for Ethereum. Analysts also noted that cryptocurrency markets are “becoming increasingly tense as the downside skew in ETH risk reversals runs deeper.” According to analysts, this uneasiness is partly due to macroeconomic conditions. “We expect this uneasiness to continue as the Iran-Israel conflict evolves,” QCP Capital analysts wrote. said. Risk-off sentiment has also been exacerbated by weakness in US stocks, according to analysts.
Cryptocurrency markets have been experiencing significant uncertainty lately. Although QCP Capital’s report predicts that the declines in the markets may deepen in the short term but prices may reach higher levels by next year, it also emphasizes that investors should be careful against sharp price fluctuations in Ethereum. Macroeconomic conditions and geopolitical developments also seem to continue to affect the markets.
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