Bitcoin (BTC) Price Recoups $70,000 Showing Strength Before FOMC, Will ETH Catch Up?

After dropping all the way to $66,000 earlier on Thursday, the Bitcoin (BTC) price has registered a healthy bounce back all the way to $70,000 once again. As of press time, BTC is trading 1.32% up at a price of $69,269.64 with a market cap of 1.36 trillion.

Bitcoin Investors ‘Buy The Dip’

In a recent market analysis, QCP Capital highlights a significant uptick in Bitcoin prices during the New York trading session, with substantial dip buying activity propelling prices back towards the $70,000 mark. Analysts suggest that this surge in prices is likely driven by increased demand for spot Bitcoin ETFs.

The notable price movement is attributed to large-scale purchases of Bitcoin 75,000 calls set to expire later this week. This surge in call options activity prompts speculation regarding market expectations for Bitcoin to surpass previous highs, potentially influenced by a dovish stance from the Federal Open Market Committee (FOMC).

Furthermore, JPMorgan managing director, Nikolaos Panigirtzoglou, revealed that Bitcoin has surpassed gold in investor portfolio allocation when considering volatility. Panigirtzoglou noted that when adjusted for volatility, Bitcoin’s allocation in investor portfolios is 3.7 times greater than that of gold.

He also pointed out the substantial inflows of over $10 billion into spot Bitcoin exchange-traded funds (ETFs) since their approval in January. Moreover, Panigirtzoglou suggested that the potential market size for Bitcoin ETFs could reach $62 billion.

Will ETH Price Catch Up Soon?

While the Bitcoin price catches up to $70,000, Ethereum, on the other hand, has seen a minor upside above $3,700 levels. The bulls need to take charge to push the ETH price above $4,000 once again to trigger the rally to its new all-time high. Moreover, the Ethereum derivatives data shows some confidence.

Perpetual contracts, also known as inverse swaps, incorporate a recalculated embedded rate every eight hours. A positive funding rate indicates increased leverage demand from traders with long positions.

ETH funding rates have consistently exceeded 0.03% per eight-hour interval, equivalent to 0.6% weekly. In instances of excessive bullish sentiment, these rates can surpass 2.1% weekly. Hence, traders in perpetual futures have maintained a bullish outlook despite the correction on March 15.