Why Did Bitcoin Price Plummet Today? Here is the Main Reason

Cryptocurrency analysis firm QCP Capital evaluated the situation of Bitcoin ($BTC) after a decline of approximately 4%. The firm noted that $BTC fell below $69,000 and Ethereum ($ETH) fell below $3,500 due to a relatively large outflow of -$223.8 million for $BTC spot ETFs on Monday.

The firm continues to monitor buyers of long-term $BTC purchase contracts, particularly large daily purchases of $200k contracts for March 2025.

QCP Capital has also begun monitoring market positioning for the upcoming $ETH spot ETF, with a May 23 filing deadline set. The firm noticed signs similar to those seen prior to $BTC spot ETF approval:

• Call contract buyers and higher futures funding and forwards are pushing the spot market higher, causing the Grayscale spread to rise to -24%, similar to the GBTC cut in October.

• There is an increase in long positioning in CME $ETH futures.

• However, the SEC is not aggregating $ETH spot ETF deadlines as it did prior to $BTC spot ETF approval. This raises the question: Does this mean $ETH spot ETF approval is less likely?

Regardless, QCP Capital expects some additional volatility in May.

Last Friday, QCP Capital predicted a possible rally and expected this move to be led by $BTC. However, the firm admits that they were wrong about who the leader was, as this movement was largely led by $ETH.

*This is not investment advice.