Leading trading firm QCP Capital is optimistic about Bitcoin’s price momentum, forecasting a potential return to the highs of $74,000. The firm has observed substantial buyers acquiring 100,000 to 120,000 BTC Calls for December 2024, indicating confidence in the upward movement of the cryptocurrency. The surge in spot prices has coincided with increased institutional demand, with asset managers Millennium and Schonfeld allocating a percentage of their assets under management into BTC spot ETFs. QCP Capital highlights factors aligning favorably for Bitcoin’s breakout, such as growing sovereign and institutional adoption, easing inflation concerns, and the upcoming US elections, prompting speculation about the resumption of the bull market.
In response to the optimistic outlook for Bitcoin, QCP Capital offers two trade ideas for investors seeking to capitalize on a potential bullish trend. The first trade idea is the June Seagull strategy, involving selling a 60,000 Put option and buying a 70,000 Call option with an 88,000 knock-out level. If the BTC spot price approaches 88,000 at expiry, investors could yield a maximum payout of $18,000 per BTC. The second trade idea is the August Seagull strategy, which entails selling a 58,000 Put option and buying a 70,000 Call option with a 100,000 knock-out level. If the BTC spot price reaches just under 100,000 at expiry, investors could enjoy a maximum payout of $30,000 per BTC.
Despite the bullish view from QCP, Michael Novogratz, founder of Galaxy Digital Holdings, expects Bitcoin to remain in a relatively narrow trading range in the current quarter. Novogratz anticipates Bitcoin to trade within a range of approximately $55,000 to $75,000 until specific market events or circumstances push the prices higher. He emphasizes the importance of the Fed’s rate decisions and the impact of the upcoming election on the crypto regulatory landscape. On the other hand, technical analyst Rekt Capital believes Bitcoin has emerged from the post-halving “danger zone” and entered an accumulation phase, indicated by weakening selling pressure.
In a recent post, QCP Capital expressed its expectation of bullish momentum in Bitcoin that could potentially take the cryptocurrency back to the highs of $74,000. The firm noted significant buyers of BTC Calls for December 2024, showcasing confidence in the upward movement. Institutional demand for Bitcoin continues to grow, with major asset managers like Millennium and Schonfeld allocating portions of their assets under management into BTC spot ETFs. QCP Capital points out factors favoring Bitcoin’s breakout, including increasing sovereign and institutional adoption, easing inflation concerns, and the upcoming US elections, contributing to speculation about a resumption of the bull market.
Given the positive outlook for Bitcoin, QCP Capital provides two trade ideas for investors to potentially benefit from a bullish trend. The June Seagull strategy involves selling a 60,000 Put option while buying a 70,000 Call option with an 88,000 knock-out level. Investors could yield a maximum payout of $18,000 per BTC if the price approaches 88,000 at expiry. The August Seagull strategy consists of selling a 58,000 Put option and buying a 70,000 Call option with a 100,000 knock-out level. If the BTC spot price nears 100,000 at expiry, investors could enjoy a maximum payout of $30,000 per BTC. Despite differing opinions, the expectation of Bitcoin’s price movement continues to generate interest and speculation within the market.
