Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnSquareMore
QCP Capital highlights ether's 'significant' underperformance compared to bitcoin in August

QCP Capital highlights ether's 'significant' underperformance compared to bitcoin in August

The BlockThe Block2024/09/02 14:04
By:Brian McGleenon

Ether fared worse than bitcoin in August — plunging 22.2% compared to an 8.6% decline for the latter.September could see further bearish movements for major cryptocurrencies if the month aligns with historical seasonal trends, according to QCP Capital analysts.

QCP Capital analysts emphasized ether's significant underperformance relative to bitcoin in August and cautioned that September might bring additional declines.

"Bitcoin ended August down 8.6%. We started the month with the 'Bank of Japan crash' and bitcoin was never able to recover above $65,000. Ethereum ETH +1.78% performance in August was significantly poorer, down 22.2% in August on the back of alleged selling by Jump Trading," QCP Capital analysts said.

The price declines of both bitcoin and ether in August occurred amid a significant increase in cryptocurrency market volatility. Last month's substantial price swings started on Aug. 4, when major tokens saw a sharp sell-off alongside equities  triggered by the Bank of Japan’s interest rate hike and the yen’s subsequent appreciation against the dollar. This sell-off marked one of the most severe downturns for risk assets since the "Black Monday" crash of 1987. According to QCP Capital, since this deleveraging event, ether has fared worse than bitcoin, with its decline potentially exacerbated by Jump Crypto , the crypto division of Jump Trading, moving large amounts of ether to exchanges on the same day.

Also, spot ether exchange-traded funds underwhelmed in August, suggesting interest in the products seems to be dwindling. The ether-based investment products saw $5.7 million worth of net outflows last week, with trading volume dropping to just 15% of levels seen during their debut week in late July.

Historical trends show September is seasonally bearish

QCP Capital analysts added that September could see a further bearish downtrend for major cryptocurrencies.

"Historically, September seasonality is bearish with six of the last seven Septembers in the red and with an average return of minus 4.5%, which would take us to around $55,000 if we see the same this month," the analysts said. They expect bitcoin to find support around $54,000 in the month ahead, which is the level it bounced from in July before briefly touching $70,000 at the end of that month.

Also, front-end options implied volatility suggests that derivatives market participants are placing their bets on a lackluster performance for both bitcoin and ether in the weeks ahead, with the longer-term view becoming more bullish.

"We expect the vol curve to steepen further as front-end vols drift lower in a sideways market. At the same time, more long calls are being rolled further out till March for both bitcoin and ether," QCP Capital analysts said.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

How much is ETH really worth? Hashed provides 10 different valuation methods in one go

After taking a weighted average, the fair price of ETH exceeds $4,700.

ForesightNews 速递2025/11/28 15:05
How much is ETH really worth? Hashed provides 10 different valuation methods in one go

Dragonfly partner: Crypto has fallen into financial cynicism, and those valuing public blockchains with PE ratios have already lost

People tend to overestimate what can happen in two years, but underestimate what can happen in ten years.

深潮2025/11/28 14:53
Dragonfly partner: Crypto has fallen into financial cynicism, and those valuing public blockchains with PE ratios have already lost

Balancer Rallies to Recover and Redistribute Stolen Funds After Major Cyber Attack

In Brief Balancer plans to redistribute $8 million to users after a massive cyber theft. The recovery involved crucial roles by white-hat researchers rewarded with 10% incentives. Unclaimed funds will undergo governance voting after 180 days.

Cointurk2025/11/28 14:33
Balancer Rallies to Recover and Redistribute Stolen Funds After Major Cyber Attack