Bitcoin to Return to $74K Highs, Bullish Momentum to Sustain: QCP Capital
Leading trading firm QCP Capital has expressed optimism about Bitcoin’s price momentum, forecasting a potential return to the highs of $74,000.
In a recent note, the firm said it has observed substantial buyers acquiring 100,000 to 120,000 BTC Calls for December 2024, indicating confidence in the upward movement of the cryptocurrency.
“US CPI numbers triggered a break out of the range across risk assets. BTC has since traded back above 66k,” the firm wrote.
The surge in spot prices has coincided with increased institutional demand, with prominent asset managers Millennium and Schonfeld allocating approximately 3% and 2% of their assets under management (AUM) into BTC spot ETFs.
QCP Capital highlights several factors aligning favorably for Bitcoin’s breakout, including growing sovereign and institutional adoption, easing inflation concerns, and the upcoming US elections.
These factors, combined with the recent price movement, have prompted speculation about the resumption of the bull market.
QCP: We expect bullish momentum here that could take us back to the highs of 74k. The desk saw sizeable buyers of 100-120k BTC Calls for Dec 2024 on this move higher in spot. Institutional demand for the BTC continues to grow with large asset managers Millenium and Schonfeld…
— Wu Blockchain (@WuBlockchain) May 16, 2024
In light of this optimistic outlook, QCP Capital offers two trade ideas for investors seeking to capitalize on a potential bullish trend.
The first is the June Seagull strategy, which involves selling a 60,000 Put option while simultaneously buying a 70,000 Call option with an 88,000 knock-out level.
This trade can be executed at zero cost, and if the BTC spot price approaches 88,000 at expiry, it could yield a maximum payout
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