QCP Capital: High volatility has cleared market leverage, BTC may reach a historic high in Q4

QCP Capital stated on its official channel that there has been a fundamental shift in the liquidity situation of ETH relative to BTC. BTC is increasingly integrated into the mainstream macro capital market, but ETH is becoming more marginalized. The digital gold narrative of BTC is very attractive to investors, while ETH lacks such a narrative. However, this does not necessarily only have a negative impact on the price of ETH. As an asset with more speculation and volatility, the implied volatility difference between BTC and ETH has widened to 20%, or even higher. The current trading strategy may choose to sell BTC volatility and buy ETH volatility.

In addition, options trading observed that compared with ETH, BTC has the same structural bullish trend. In the past two months, funds mainly flowed into BTC, especially long-term bullish funds, while funds for ETH were mainly concentrated in short-term speculation.

They believe that this week's trend of BTC was a leverage clearing action in order to set new historical highs in Q4.