Regardless of their maturity in the market, the rivalry between Bitcoin and Ethereum continues. According to the latest observations from QCP Capital, a global digital asset trading firm and market maker, Ethereum currently appears to be showing the potential for greater price swings compared to Bitcoin. QCP reveals that the volatility premium between the two major cryptocurrencies has seen a significant boost, with Ethereum leading the way in terms of potential price swings.

ETH will have greater price fluctuations than BTC

Delving into the insights shared, QCP Capital revealed that it has seen Ethereum’s volatility premium over Bitcoin boost to 8%, up from 4% just last week. This widening gap, according to QCP, underscores the growing trend of Ethereum overtaking Bitcoin in terms of price volatility. In particular, the analysis suggests that Ethereum could offer more lucrative opportunities for those looking to capitalize on market movements.

Related Reading: Ethereum’s Breakout Moment: Here’s Why ETH Could Skyrocket to $15,000 Soon

Moreover, in addition to the upcoming boost in volatility, Ethereum’s market performance has continued to diverge from Bitcoin’s, with its performance remaining relatively stable even in the face of broader market changes. Analysts at QCP Capital pointed out that despite recent market uncertainty, including significant moves by the US government on Bitcoin, ETH has managed to maintain its market position more effectively than its peer.

Analysts noted:

ETH spot performed relatively well against BTC following Trump’s speech, and ETHBTC has gained 5% since then, despite a fourth straight day of spot ETF outflows. Why the strength in ETH? The market may be becoming resistant to major outflow data due to rotation out of higher-priced ETHE into cheaper ETFs.

They note that if the current trend of outflows from instruments like the Grayscale Ethereum Trust begins to leisurely and inflows into Ethereum ETFs boost, “could ETH rise significantly higher?”

QCP Capital analysts, suggesting a deal idea, added:

While we maintain our forecast for BTC price volatility, as we reiterated yesterday, we favor accumulating ETH at the current discount given the slight boost in volatility.

Ethereum and Bitcoin Market Performance

While both Ethereum and Bitcoin have seen negative price performance over the past week, there is still a noticeable difference when it comes to the details. For example, Bitcoin is down 1.4% over the past week, but Ethereum, on the other hand, is down 4.2% over the same period.

Meanwhile, Ethereum is up 1.2% in the last 24 hours to trade at $3,314, while Bitcoin remains in the red, down 1.4% in the same period to trade at $66,292 at the time of writing.

According to prominent cryptocurrency analyst Micheal Van De Poppe, the key level for ETH/BTC is 0.0515. If this price level is broken, Van De Poppe predicts that “it’s party time” as it would be the “first strong signal of the week.”

For the first time since its launch #Ethereum The ETF price rose again during peak hours in the US.

Key levels are 0.0515 BTC. If this breaks, it’s party time.

First clear signs this week. photo:twitter.com/DysOtKMQpJ

— Michaël van de Poppe (@CryptoMichNL) July 30, 2024

Featured image created with DALL-E, chart from TradingView