QCP Capital: Crypto market nervousness is expected to continue as the conflict between Iran and Israel develops

PANews reported on April 16 that QCP Capital, a Singapore-based crypto investment institution, issued a document stating that the crypto market is becoming increasingly nervous, and the downward slope of ETH risk reversal is deeper (now -20%). This tension is expected to continue as the conflict between Iran and Israel develops. Weakness in U.S. stocks also added to risk aversion. However, we still see stable and substantial demand for options with long-term expirations (to March 2025) on BTC and ETH. BTC’s perpetual contract funding rate is basically flat, and the back end of the curve maintains double-digit yields. Perpetual contract funding rates for other mainstream currencies are also generally negative, indicating that a large amount of long leverage has been cleared. Given the current nervousness in the market, it is recommended to be very cautious about bargain hunting by purchasing BTC or ETH at a significant discount to the spot price.