QCP Capital: Market Remains Concerned about Short-Term Downside Volatility in ETH

According to QCP Capital’s latest analysis, the volatility of ETH contracts has reached 105, indicating that there may be significant fluctuations before the application deadline. The funding rate for ETH perpetual contracts has dropped from 50% to stability within 12 hours, while the June futures contract still maintains a 15% yield, which may reflect a weakening of short-term speculative activity but a continued bullish sentiment in the medium term. The risk reversal rate for ETH on May 24th and 31st is -7, indicating that the market is still concerned about short-term downward volatility, which may lead to tactical hedging of long ETH positions. The spot Bitcoin ETF has attracted nearly $1.5 billion in total over the past seven days. In the US election, there is increasing attention on narratives about cryptocurrencies, especially after the recent change in the SEC’s stance.