Cryptocurrency trading firm QCP Capital has made a statement following the recent declines in the cryptocurrency market.
Sharing a report early today, QCP Capital felt the need to share a second note, as the negative sentiment in the market continued.
In the recent note, it was stated that the volatility expected to occur over the weekend came earlier than expected and possible reasons were given.
Analysts highlighted that the spot Bitcoin ETF entry data presented last night fell to a level of 32.7 million dollars, much lower than expected, and hinted at possible continued declines until May.
Additionally, it was mentioned that institutional whales, who had been aggressively buying options during the rise, had started to pull out. Analysts warned that danger bells would ring if Bitcoin remained below 65,000 dollars and Ethereum below 3,000 dollars:
Bitcoin spot ETF entries came in weak at a net level of 132.7 million dollars. This implies a sharp drop in demand. The reported unfavorable risk reversals deepened this morning and spread to May; The market is particularly nervous about BTC being below 65,000 and ETH being below 3,000. In addition, we also saw a significant unwind of calls from institutional players who had aggressively bought options on the rise.
