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 cryptocurrency’s upward movement. The surge in spot prices coincides with increased institutional demand, with asset managers Millennium and Schonfeld allocating around 3% and 2% of their assets under management into Bitcoin spot ETFs. Several factors align favorably for Bitcoin’s breakout, including growing sovereign and institutional adoption, easing inflation concerns, and the upcoming US elections, prompting speculation about the resumption of the bull market.
In light of the 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, involving selling a 60,000 Put option while buying a 70,000 Call option with an 88,000 knock-out level. This trade can be executed at zero cost and could yield a maximum payout of $18,000 per BTC if the spot price approaches 88,000 at expiry, equivalent to a 249% annualized return. The second trade idea is the August Seagull strategy, selling a 58,000 Put option and buying a 70,000 Call option with a 100,000 knock-out level, also at zero cost. If the spot price reaches just under 100,000 at expiry, investors could enjoy a maximum payout of $30,000 per BTC, representing a potential annualized return of 176%.
Despite QCP Capital’s bullish view, Michael Novogratz, the founder of Galaxy Digital Holdings, expects Bitcoin to trade in a relatively narrow range in the current quarter. He anticipates Bitcoin to remain between approximately $55,000 to $75,000 until specific market events push prices higher. Novogratz cites tailwinds from the previous year and the first quarter of this year as factors influencing his prediction. Technical analyst Rekt Capital believes that Bitcoin has emerged from the post-halving “danger zone” and entered an accumulation phase, as indicated by weakening selling pressure. The trader sees positive signs for Bitcoin’s price movement moving forward.
QCP Capital’s optimism about Bitcoin’s price momentum is supported by the increasing institutional demand for the cryptocurrency. With prominent asset managers allocating percentages of their assets under management into Bitcoin spot ETFs and buyers acquiring significant amounts of BTC Calls for December 2024, confidence in Bitcoin’s upward movement is evident. The alignment of various factors, such as growing sovereign and institutional adoption and easing inflation concerns, sets the stage for a potential breakout in Bitcoin’s price, prompting speculation about the resumption of the bull market.
The trade ideas presented by QCP Capital offer investors opportunities to capitalize on a potential bullish trend in Bitcoin’s price. Through the June and August Seagull strategies, investors can execute trades at zero cost and potentially achieve significant payouts if the spot price of Bitcoin reaches certain levels at expiry. These strategies leverage options trading to provide investors with the ability to benefit from Bitcoin’s price movement while managing risk effectively. Additionally, QCP Capital’s trade ideas reflect a strategic approach to trading Bitcoin in the current market environment, taking advantage of expected bullish momentum.
