The crypto market is experiencing a heightened sense of uncertainty, with a strong inclination towards mitigating the risk of a potential Ethereum reversal, according to analysts at QCP Capital.

Amid escalating tensions in the Middle East due to the Iran-Israeli conflict and the lackluster performance of U.S. stocks, traders are increasingly risk-averse, contributing to a prevailing sense of nervousness in the cryptocurrency sector.

Analysts note that funding for alternative contracts remains negative, signaling a significant reduction in long-term leverage. Despite this, there continues to be robust demand for Bitcoin (BTC) compared to Ethereum (ETH), with BTC perpetual funding remaining relatively steady.

In light of these dynamics, experts advise a cautious approach to bottom-picking, recommending the purchase of BTC or ETH at substantial discounts to the spot price.

The recent dip in Bitcoin's price, triggered by news of Iran's attack on Israel on April 14, saw an 8% retreat below $62,000, marking its most significant drop since March 2023. However, Bitcoin's price has since recovered slightly, reaching $62,300 at the time of publication, according to CoinMarketCap.

Despite the market volatility, QCP Capital had previously expressed confidence in the upcoming Bitcoin halving, which will reduce miners' rewards for a mined Bitcoin block to 3.125 BTC. This event is expected to not only increase demand for Bitcoin but also drive growth, fueled by increased inflows into spot ETFs.

Additionally, reports of major financial institutions such as Citadel, Goldman Sachs, UBS, and Citi joining BlackRock's exchange-traded fund have contributed to positive sentiment, with BlackRock acting as a broker-dealer authorized to create and redeem shares of the ETF.