The leading cryptocurrency Bitcoin failed to hold on to the new ATH level of $73,000, which it reached last week, and fell to the level of $64,000 due to the selling pressure it encountered.
While it remains unclear whether the decline in Bitcoin will continue or not, some investors are cautious about the prospect of a further decline, while some investors turned this decline into an opportunity and started making purchases.
While the Fear in Bitcoin Dissipates, the Situation for Ethereum is Worrying!
At this point, analysts of Singapore-based cryptocurrency company QCP Capital, who analyzed the decline in Bitcoin and its aftermath, said that the fear of a decline in BTC has dissipated.
Analysts stated that investors had overcome their fear at the time of the first decline and that they saw intense sales of BTC put options, indicating that investors were happy to buy the decline.
Stating that option investors bought $ 100,000 and $ 150,000 call options on Bitcoin for September and December, analysts pointed out that there is a downside risk in Ethereum.
Pointing out that the situation is more worrying for ETH, analysts warned investors about ETH and said:
“As Bitcoin fell to $64,500, this drop created both fear and greed in investors over the weekend.
BTC has since risen above $67,000 and we have seen intense BTC put option selling. This shows that the 'fear' in BTC has dissipated and investors are happy to buy this dip.
We are also seeing an interest and increase in long-term call options worth $100,000-$150,000 in September and December.
While the situation is relatively better in Bitcoin, the downside risk in Ethereum still continues.
Perpetual funding on Ethereum has turned negative, indicating downside risk remains.
Despite the ongoing rise in altcoins, the market is quite nervous about the ETH price breaking. That's why the situation is more worrying for ETH.”
At the time of writing, Bitcoin continues to trade at $68,331 and Ethereum continues to trade at $3,634.
*This is not investment advice.