Cryptocurrency markets have experienced a rebound following comments by the Bank of Japan (BOJ) vice governor reducing the likelihood of another interest rate hike in the near term.
Crypto Markets Are Recovering While BOJ Deputy Governor No Message for Interest Rate Increase in the Near Term
Despite the overall recovery in the market, Ethereum (ETH) continues to lag, while Bitcoin (BTC) continues to perform strongly, with significant option buying observed for December and March expirations.
The cryptocurrency market experienced a significant recovery after Bank of Japan Deputy Governor Shinichi Uchida suggested that the central bank may not raise interest rates further in the near future.
Uchida's comments pointing to a potential pause in monetary tightening provided support to market sentiment.
Despite the market-wide recovery, Ethereum (ETH) has struggled to keep up. ETH's performance remains weak compared to Bitcoin (BTC), which has shown resilience and strength in recent transactions.
QCP Capital reports that Bitcoin continues to attract bullish interest. The company emphasizes that there was a significant increase in option purchases for Bitcoin, especially at expirations in December and March.
This bullish trend is supported by major funds renewing their long call positions in September, an indication of confidence in Bitcoin's future performance.
The rise in call options on Bitcoin and strategic adjustments by major funds reflects strong belief in BTC's continued upward trajectory even as Ethereum faces challenges.
The performance disparity between BTC and ETH underscores current market dynamics and investor sentiment.
*This is not investment advice.