QCP: US-China Tariff Ceasefire Increases Risk Appetite, Ethereum Emerges as Strong Competitor
Digital asset trading firm QCP Capital said that the temporary tariff reduction agreement between the US and China has caused an increase in market risk appetite and signs of capital rotation in the crypto space are beginning to emerge.
According to QCP’s latest market analysis, Bitcoin (BTC) and Ethereum (ETH) have stabilized around $103,000 and $2,400, respectively, after experiencing brief pullbacks. Despite the decline, Ethereum has performed relatively strongly, thanks to the increasing demand for ETH options and optimism surrounding the Pectra update.
Notably, Bitcoin’s dominance has fallen below 63%, a sign that capital could be shifting to altcoins, with Ethereum predicted to benefit the most in the short term.
Volatility Decreasing, ETH Gaining Momentum
QCP reported that market volatility has generally cooled, with Bitcoin’s short-term implicit volatility (IV) falling by more than 5 points. At the same time, the CBOE Volatility Index (VIX), often seen as Wall Street’s “fear gauge,” fell to 18, reflecting investors’ general confidence.
“The relative strength of ETH, combined with increasing options demand and the successful Pectra upgrade, sets the stage for Ethereum to become a core allocation asset in the next phase of the market cycle,” QCP wrote.
The firm emphasized that current macro conditions, including easing geopolitical tensions and improving global liquidity, have created a more favorable environment for risky assets, especially in the crypto sector.
As Bitcoin consolidates and its dominance weakens, market participants are closely watching Ethereum and other high-potential altcoins for leadership in the next wave of upside.
*This is not investment advice.