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Cryptocurrency analysis firm QCP Capital has published a comprehensive market assessment for Ethereum (ETH) and Bitcoin (BTC) following the recent market volatility.
The report particularly highlighted Ethereum's rising momentum and its superior performance in spot ETF inflows.
According to QCP Capital, Ethereum is on a remarkable rally, approaching the $4,000 level for the first time since December 2023. Spot ETF inflows into ETH have outpaced Bitcoin ETF inflows over the past seven days, suggesting growing institutional interest in the Ethereum narrative.
The company stated that Ethereum's market capitalization is still around one-fifth of Bitcoin's, adding, “It takes much less institutional or treasury capital to move the price of ETH compared to BTC.”
In recent weeks, while ETH has dominated the news, Bitcoin has demonstrated quiet resilience. Despite a slowdown in spot BTC ETF inflows, prices have held firm. The 80,000 BTC sold by a long-term investor last Friday was absorbed without causing significant market panic. The sudden surge in volatility quickly reversed.
According to the analytics firm, BTC dominance remained stable at around 60%, indicating that investors continue to view Bitcoin as a store of value. QCP Capital noted that this isn't a complete shift towards altcoins, but that ETH and other major projects still have room to increase their market share. As you may recall, at ETH's peak in November 2021, BTC dominance had fallen below 45%, while ETH's was approaching 20%.
According to the report, the market is showing signs of oversold positioning in the short term. Open interest in perpetual futures is approaching year-highs of $45 billion for BTC and $28 billion for ETH. At the same time, funding rates on major exchanges have risen above 15%.
QCP Capital stated that these levels haven't yet signaled a major correction, but even a small trigger could trigger a chain reaction sell-off similar to last Friday. Indeed, some large investors took profits by closing their 3.6k/4k/4.2k ETH Call Fly positions due September 26, 2025. Meanwhile, there was strong demand for $110,000 BTC Put options due August 8, 2025, indicating a search for protection against near-term risks.
Profit-taking is expected around $4,000 for ETH and $120,000 for BTC in the coming days. However, QCP Capital predicts that, given the current momentum, strong trends, and supporting macroeconomic factors, the market will continue to buy on pullbacks. The rapid recovery observed after Friday's decline, in particular, suggests that institutional investors are continuing their “buy the dip” strategy.
*This is not investment advice.