Despite Bitcoin’s recent drop to $59,000, analysts at QCP Capital remain optimistic about the performance of the ETH/BTC pair. A volatile overnight session saw Bitcoin reaching a new all-time high of $69,400, only to experience a rapid decline to $59,200, resulting in over $1 billion in liquidated leveraged long positions on Binance.

However, the market quickly rebounded as the dip was aggressively bought up, with the $60,000 level proving to be strong support. Funding rates have returned to more sustainable levels, hovering around 30% annually on Binance. Analysts anticipate Ethereum to outperform Bitcoin, especially as the narrative around an ETH spot ETF gains traction.

“The likely scenario is the outperformance of ETHBTC as the ETH spot ETF narrative comes into play.”

Despite the leverage unwinding, term futures are still trading at a premium to spot prices, with a surge in client activity focused on selling the spot-forward spread, particularly for contracts expiring between September and December, offering investors risk-free yields for the year.

While Bitcoin is only 4.3% away from its all-time high, Ethereum remains over 20% below its 2021 record, indicating a potential for significant value appreciation. Wall Street giants are stepping up efforts to introduce more spot crypto ETFs, following the SEC’s approval of all spot Bitcoin ETF applications in January. Discussions are ongoing for spot Ethereum ETFs, with decisions delayed until at least May. VanEck, BlackRock, Franklin Templeton Grayscale, and Invesco Galaxy are among the applicants awaiting a response by May 23.

For more news and updates on the cryptocurrency market, visit Global Crypto News.

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