QCP Capital: LIBRA ‘Rug Pull’ Scandal Could Suppress Altcoin And Memecoin Markets, Options Market Awaiting Policy Changes
In Brief
QCP Capital notes that altcoins continue to underperform, while the recent LIBRA “rug pull” scandal has generated negative sentiment around similar projects, dampening expectations for an altcoin or memecoin season.
Singapore-based cryptocurrency trading firm QCP Capital released its latest market analysis, observing that as the market continues to trade sideways, Bitcoin’s dominance has risen to around 60%, reaching levels not seen in four years. This comes as Ethereum and other altcoins continue to underperform. Furthermore, the recent LIBRA “rug pull” scandal, which involved Argentinian President Javier Milei, has created negative sentiment around similar projects, further dampening expectations for an altcoin or memecoin season.
With Bitcoin maintaining a stable position in the middle of its range, implied volatility has been drifting lower, which aligns with the drop in seven-day realized volatility to 36%. With no major cryptocurrency-specific catalysts on the horizon, market movements appear to be influenced more by macroeconomic factors, especially considering the ongoing correlation between Bitcoin and equities.
Despite the macroeconomic uncertainties, such as tariffs, debt ceiling concerns, and inflation, as well as the unpredictability of Donald Trump’s political moves, QCP Capital notes that both cryptocurrency implied volatility and the VIX are trading at their lowest levels. Bitcoin has shown resilience, largely unaffected by recent macroeconomic data. Open interest has not considerably rebounded since the January month-end expiry, indicating that the cryptocurrency options market is awaiting concrete policy changes rather than reacting to pro-cryptocurrency rhetoric.
The market remains uncertain about whether it’s worthwhile to invest in volatility decay at these levels, which resemble the Q2-Q3 period from last year when Bitcoin struggled to break out of its extended range. As a result, most market activity has been centered around short-term volatility selling or range trading rather than positioning for a major breakout.
Bitcoin Trades Above $96,000 Level Amid Lower Altcoin Performance
As of the current writing, Bitcoin is trading at $96,191, reflecting a 1.12% decrease over the past 24 hours. The cryptocurrency’s intraday low and high were recorded at $95,934 and $97,266, respectively, according to CoinMarketCap data. Bitcoin dominance is at 57.3%. Bitcoin futures’ Open Interest (OI) saw a slight increase of 0.2% during the day, reaching $60.53 billion, based on information from Coinglass.
ETH also traded lower, with similar declines seen in XRP and SOL, as both faced challenges during their intraday sessions, primarily staying in the red.
The global cryptocurrency market capitalization dropped by 2.4% from the previous day, standing at $3.3 trillion at the time of writing. Meanwhile, the total cryptocurrency trading volume reached $83.8 billion, according to data from Coingecko.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, 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 cryptocurrency, zero-knowledge proofs, 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.
