Recent declines in Bitcoin, Ethereum, and the total crypto market cap have raised concerns among traders, according to QCP Capital, an options agency.

In an update released on March 15, QCP Capital highlighted the volatility in cryptocurrency markets as Bitcoin (BTC) fell below $66,000 for the first time in nearly two weeks.

Bitcoin saw a decrease of over 5% in the last 24 hours, dropping to $65,565 during trading hours. Ethereum (ETH) also retraced more than 5% to around $3,566 before recovering slightly. The total crypto market cap fell to $2.6 trillion, down 4% on the day, as reported by CoinMarketCap.

QCP Capital analysts noted that the markets were “particularly nervous” due to a valuation correction across the two largest tokens in the crypto space. This negative risk reversal was expected to extend to May, according to large capital investors.

Additionally, institutional players were seen unwinding calls, indicating a shift in market sentiment.

On March 14, there was a lackluster interest in spot BTC ETF, leading to Bitcoin’s market correction. SoSo Value data revealed total net inflows of $132.5 million across 10 tradable funds, with BlackRock leading the pack with $345 million.

However, Grayscale’s GBTC saw $257 million in net outflows, dampening the overall influx into BlackRock’s iShares Bitcoin ETF (IBIT). Other funds like Bitwise, Invesco Galaxy, and WisdomTree reportedly had $0 net inflows.

Overall, the recent market movements indicate a period of uncertainty and caution among traders and investors in the cryptocurrency space.

Post Views: 3