Ethereum Poised to Lead as US-China Truce Sparks Risk Rally

Improved relations between the U.S. and China are helping reignite investor confidence across global markets—and crypto is no exception.

According to Singapore-based QCP Capital, the temporary tariff truce between the two powers has sparked a resurgence in risk-taking, with Ethereum emerging as a key beneficiary.

In its latest market update, QCP noted that Bitcoin and Ethereum have steadied near $103,000 and $2,400, respectively, after a brief dip. While price action remains calm, Ethereum is showing signs of quiet strength, fueled by rising interest in ETH options and growing optimism around the Pectra upgrade.

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Bitcoin’s market dominance has slipped below 63%, a shift QCP sees as an early signal of capital rotating into altcoins. Ethereum, in particular, is gaining momentum as market volatility declines. QCP observed a notable drop in Bitcoin’s short-term implied volatility, while the CBOE VIX index has also fallen to 18—suggesting easing fear across financial markets.

“The combination of ETH strength, demand for derivatives, and macro tailwinds puts Ethereum in a prime spot to take the lead in the next market cycle,” the firm stated.

With Bitcoin entering a consolidation phase and global liquidity conditions improving, investors appear to be positioning for a broader altcoin rally—with Ethereum at the forefront.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.