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.

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.