The crypto markets are experiencing heightened uncertainty as the focus on mitigating the risk of a potential reversal in ETH intensifies. Analysts at QCP Capital anticipate continued nervousness in the cryptocurrency industry as tensions in the Middle East escalate due to the Iran-Israel conflict. Furthermore, many traders are now hesitant to take risks in light of the lackluster performance of U.S. stocks.
Funding for alternative contracts is showing a negative trend, indicating a significant reduction in long-term leverage. Despite this, there remains a strong demand for Bitcoin (BTC) in the crypto market, contrasting with the sentiment towards Ethereum (ETH). Given the current market conditions for major cryptocurrencies, experts advise a cautious and defensive approach when “picking bottoms” and recommend purchasing BTC or ETH at a significant discount to the spot price.
In a recent development on April 14th, Bitcoin’s price plummeted following news of Iran’s attack on Israel. The 8% drop below $62,000 marked the largest decline since March 2023. However, the price showed a slight recovery, reaching $62,300 according to CoinMarketCap data.
Last week, QCP Capital expressed confidence that the upcoming Bitcoin halving, which will reduce the miners’ reward for each mined Bitcoin block to 3.125 BTC, could lead to a surge in demand for the leading cryptocurrency. Factors contributing to this growth include increased inflows into spot ETFs and reports of major financial institutions such as Citadel, Goldman Sachs, UBS, and Citi joining BlackRock’s exchange-traded fund. BlackRock will serve as a broker-dealer authorized to create and redeem shares of the ETF.
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