QCP Capital: Short-Term Crypto Bottom May Be Forming as BTC and ETH Rebound, ETF Inflows Resume

QCP Capital said on Feb. 11 that Bitcoin and Ethereum have rebounded from last week's lows and a short-term market bottom may be forming, though it expects BTC to trade in a range-bound consolidation as investors await new catalysts. Spot BTC ETFs saw a $145 million net inflow on Feb. 10, extending Friday's $371 million inflow and ending prior outflows, while spot ETH ETFs shifted to a $57 million net inflow after three days of redemptions, providing strong support for Ethereum, the firm said. QCP noted macro conditions have marginally eased, citing reduced U.S.-Iran tensions after last Friday's negotiations and weak employment data that pushed markets toward expecting a potential Fed rate cut in March, with attention now on upcoming nonfarm payrolls and CPI data. The firm added U.S.-led spot selling pressure has moderated but sentiment remains fragile with the fear and greed index stuck in extreme fear, while the BTC/ETH ratio is steady in the 33 to 34 band and implied volatility has pulled back from highs but stays elevated.