The cryptocurrency market is showing signs of recovery following reassuring comments from the Bank of Japan (BOJ). However, not all cryptocurrencies are benefiting equally. While Bitcoin (BTC) continues to attract bullish sentiment, Ethereum (ETH) faces headwinds from large-scale liquidations and potential selling pressure.
According to a recent report by QCP Capital, the BOJ deputy governor’s statement downplaying the likelihood of another near-term rate hike has provided a boost to crypto markets. This positive macro sentiment has allowed cryptocurrencies to regain some lost ground.
However, Ethereum’s performance continues to lag. The report highlights two factors that could cap ETH’s upside potential in the near term:
- Jump Trading is continuing its ETH liquidations. The firm still has approximately 21,394 wrapped staked ETH (wstETH) left to sell, valued at around $63.6 million.
- Two Ethereum wallets associated with the Plus Token Ponzi scheme have moved a total of 25,757 ETH (worth about $63.1 million) in the last 30 hours, raising concerns about potential sell pressure.
Despite these challenges for Ethereum, the outlook for Bitcoin remains optimistic. QCP Capital reports major call buying activity in the December and March expiries, indicating positive sentiment among traders.
Additionally, major funds are rolling over their September long call positions, suggesting continued bullish expectations for BTC.
Bitcoin and Ethereum nosedived this week, hitting as low as $49,000 and $2,100, respectively. However, both cryptocurrencies have shown signs of a recovery, with Bitcoin gaining the most in comparison to Ethereum.
Also Read: Jump Trading Moves 11.5K Ethereum to Sale Wallet: ETH Price Steady