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QCP Capital: Ethereum Nears $4K Amid Strong ETF Inflows As Bitcoin Holds Steady, Market Positioning Signals Potential Volatility Ahead

QCP Capital: ETH Approaches $4000 On Sustained ETF Inflows, BTC Holds Firm As Market Signals Near-Term Caution
QCP Capital: ETH Approaches $4000 On Sustained ETF Inflows, BTC Holds Firm As Market Signals Near-Term Caution

Singapore-based digital asset firm QCP Capital has released its latest market commentary, noting that Ethereum is approaching the $4,000 threshold for the first time since December of the previous year. The report highlights a continued surge in interest surrounding ETH, supported by seven consecutive days in which spot ETH exchange-traded fund (ETF) inflows have surpassed those of Bitcoin. Given that ETH’s market capitalization remains approximately one-fifth that of BTC, smaller volumes of institutional and corporate capital are required to create upward price pressure.

Although ETH has garnered substantial attention in recent weeks, BTC has demonstrated stability. Spot Bitcoin ETF inflows have slowed, yet the asset’s price has remained relatively firm. The recent sale of 80,000 BTC by a long-time holder on Friday was largely absorbed by the market, with traders swiftly stepping in to buy the dip, and volatility levels quickly returning to prior levels.

BTC dominance has held steady at around 60% over the past week, indicating ongoing investor confidence in Bitcoin’s role as a store-of-value asset rather than a broad shift into alternative cryptocurrencies. This stability in dominance may suggest further potential for ETH and other major altcoins to expand their market share. By comparison, during ETH’s peak in November 2021, BTC dominance fell below 45%, while ETH’s reached approximately 20%.

However, current market positioning appears elevated. Open Interest in perpetual futures is nearing one-year highs, standing at approximately $45 billion for BTC and $28 billion for ETH. Funding rates for perpetual contracts exceed 15% across leading exchanges. While not at levels that would typically indicate market exhaustion, the environment may be susceptible to sharp corrections, similar to the one observed last Friday. Some large market participants have already locked in profits, including the unwinding of a large ETH 26SEP25 3.6k/4k/4.2k call fly. Simultaneously, BTC 8AUG25 110k puts were acquired in size, suggesting hedging activity against potential near-term downside.

Options market data, including flattened risk reversals across short-dated tenors, suggests that traders expect potential profit-taking near the $4,000 level for ETH and the $120,000 level for BTC. Nevertheless, with ongoing narrative momentum, institutional interest, and supportive macroeconomic conditions, the market may continue to experience dip-buying behavior, as was observed following last week’s pullback.

Bitcoin Nears $119K As Ethereum Climbs To $3.9K 

At the time of reporting, Bitcoin is trading at $118,950, reflecting a 0.69% gain within the past 24 hours. The asset reached an intraday high of $119,792 and a low of $117,949 during the same period.

Ethereum, in comparison, is trading at $3,886, marking a 1.36% increase over the last 24 hours. The highest and lowest recorded prices for ETH in this timeframe were $3,933 and $3,799, respectively.

The overall cryptocurrency market capitalization stands at $3.94 trillion, representing a 1.06% rise over the previous day. Total market trading volume over the past 24 hours amounts to $161.83 billion, showing an increase of 34.75%. Bitcoin’s share of the market is currently 60.03%, reflecting a 0.27% decline over the same period, based on data provided by CoinMarketCap.

The post QCP Capital: Ethereum Nears $4K Amid Strong ETF Inflows As Bitcoin Holds Steady, Market Positioning Signals Potential Volatility Ahead appeared first on Metaverse Post.

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