WHY DID Bitcoin FALL?

Crypto analysis firm QCP Capital evaluated the status of Bitcoin (BTC) following a drop of about 4%. They stated that Bitcoin fell below $69,000 and Ethereum (ETH) dropped below $3,500 due to a relatively large outflow of $223.8 million for BTC spot ETFs on Monday.

The firm continues to observe large daily purchases of long-term BTC contracts, especially for contracts worth $200,000 for March 2025.

QCP Capital has also begun to monitor market positions for the upcoming ETH spot ETF, with the deadline set for May 23. The firm claimed that similar signals to those seen before the approval of BTC spot ETFs are present.

Buyers of futures contracts and funding for high-term transactions, along with forwards, are pulling up the spot market. This has caused the Grayscale spread to rise to -24%, similar to the discount seen in GBTC in October.

There is an increase in long positions in CME ETH futures.

However, the SEC is not aligning the deadlines for ETH spot ETFs as it did before the approval of BTC spot ETFs. This raises the question: Does this mean the likelihood of approval for ETH spot ETFs is lower?

QCP Capital expects some additional volatility in May.