QCP: Altcoin bulls may already be fully loaded, and any new inflows of USD funds could go to Bitcoin
7x24h News
QCP: Altcoin bulls may already be fully loaded, and any new inflows of USD funds could go to Bitcoin
The rise in Bitcoin's market dominance and the decline in altcoin prices suggest that altcoin bulls may already be fully invested, with any new incoming U.S. dollar funds flowing solely into Bitcoin.
Navigating Web3 tides with focused insightsTechFlow news — On February 25, QCP Asia released its market observations for the day, as follows: "Bitcoin has finally broken out of its range-bound consolidation, dropping below $90,000 for the first time in a month and currently hovering just below that level. Over the past few hours, this move has triggered more than $200 million in liquidations.
Market sentiment remains under pressure following Trump’s decision to impose tariffs on Canada and Mexico while restricting Chinese investments. As Bitcoin prices decline, hedging activity via short-term options has increased. The one-month implied volatility has now rebounded to 50, while option skew remains notably stable.
From a broader perspective, despite previously bearish data that was thought to weaken wider financial markets, equities, fixed income, and gold markets have largely absorbed these impacts—while Bitcoin remains range-bound. The rising Bitcoin market dominance alongside declining altcoin prices suggests long positions in altcoins may already be fully loaded, with any new USD capital inflows flowing exclusively into Bitcoin.
We maintain a cautious stance. Recent demand for Bitcoin has been primarily driven by institutions such as MicroStrategy and Metaplanet, which are raising funds through stock-linked notes. Given that crypto-related issuances accounted for approximately 19% of total issuance over the past 14 months, this funding channel may be nearing saturation—which could dampen future performance."
