QCP Capital: Bitcoin Rally Fizzles Amid Mt. Gox Selloff And ETF Outflows, Market Braces For Volatility
In Brief
QCP Capital notes that, as Friday’s Mega Expiry approaches, the market appears prepared for potential volatility, with volatility spreads elevated, suggesting that it has not yet stabilized.
Singapore-based cryptocurrency trading firm QCP Capital released a market analysis noting that the expected Bitcoin rally during the holiday season did not materialize. This was partly due to Mt. Gox moving $49.3 million worth of BTC, which triggered a selloff that saw Bitcoin drop to $92,500, a 14% decrease from last week’s all-time high. However, the price rebounded to reclaim $95,000. QCP Capital pointed out that market sentiment seems to be softening as liquidity dwindles toward the end of the year, and spot Bitcoin exchange-traded funds (ETFs) experienced their third consecutive day of outflows.
MicroStrategy also made headlines by announcing the purchase of an additional $561 million in BTC at an average price of $106,662, marking its seventh consecutive week of acquisitions. However, this purchase is the smallest in recent weeks, raising questions about the company’s appetite for Bitcoin at current price levels.
Despite the BTC price drop, there was no notable rush to cover gamma and front-end volatility remained subdued. As Friday’s Mega Expiry approaches, the market appears prepared for potential volatility, with volatility spreads elevated at +2.0, suggesting the market has not yet stabilized.
With traditional markets winding down for the holiday season, Bitcoin’s continuous trading nature could become a key outlet for market reactions to notable events. For example, Bitcoin/Korean Won (BTC/KRW) recently reflected market responses to President Yoon’s martial law declaration. Given these dynamics, QCP Capital remains cautious about potential gap moves in the market.
Bitcoin Trades Around $94,000 Mark, Spot ETFs See $276M In Outflows
As of the latest data, Bitcoin is trading at $94,065, reflecting a decline of 1.92% over the past 24 hours. Its 24-hour low was $92,509, while the high reached $96,284. The market capitalization is currently $1.86 trillion, with a trading volume of $56.59 billion. Bitcoin’s market dominance has decreased to 56.26%, slightly lower than the previous day.
According to data from SoSo Value, during yesterday’s session, spot Bitcoin ETFs experienced outflows totaling $276 million. BlackRock, after a considerable period, saw an outflow of $72 million. Ark & 21Shares reported the largest outflow at $87 million, followed by Fidelity with $71 million and Grayscale with $57 million.
Meanwhile, the global cryptocurrency market cap has seen a slight decrease of approximately 0.04%, now standing at $3.31 trillion. However, trading volume has increased by 0.34%, reaching $152 billion. The Fear and Greed Index is currently at 55, indicating a neutral market sentiment.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
