Crypto markets are experiencing increased uncertainty as the focus on minimizing the risk of an ETH reversal intensifies. Analysts at QCP Capital anticipate ongoing nervousness in the cryptocurrency sector due to the escalating situation in the Middle East with the Iran-Israeli conflict unfolding. Traders are also cautious amid the weak performance of U.S. stocks.

Funding for alternative contracts is generally negative, indicating a significant reduction in long-term leverage. However, there is still strong demand for Bitcoin (BTC) compared to Ethereum (ETH) in the crypto market. According to QCP Capital analysts, “Perp funding for BTC is flattish with the back end of the curve holding steady at double digit yields.”

Given the current dynamics of major cryptocurrencies, experts advise taking a defensive approach when looking to buy BTC or ETH at a substantial discount to the spot price. It is recommended to “pick bottoms very defensively” in such market conditions.

On April 14th, Bitcoin’s price experienced a significant decline following news of Iran’s attack on Israel. The price dropped by 8% below $62,000, marking the most significant retreat since March 2023. However, the price slightly recovered to $62,300 at the time of publication, according to CoinMarketCap data.

QCP Capital remained confident last week that the upcoming Bitcoin halving, reducing the miners’ reward for a mined Bitcoin block to 3.125 BTC, could lead to a surge in demand for the cryptocurrency. Factors contributing to this growth include increased inflows into spot ETFs and reports of major financial institutions like 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.

As the cryptocurrency market continues to evolve, staying informed about these developments is crucial for making informed investment decisions. Stay updated with Global Crypto News for more insights and analysis on the latest trends in the crypto world.

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