QCP Capital, a leading trading firm, is optimistic about the Bitcoin price momentum and forecasts a potential return to the highs of $74,000. The firm has observed significant buyers acquiring 100,000 to 120,000 BTC Calls for December 2024, indicating confidence in the upward movement of the cryptocurrency. The recent 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 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, prompting speculation about the resumption of the bull market.
In response to the optimistic outlook, QCP Capital offers two trade ideas for investors seeking to capitalize on a potential bullish trend. The June Seagull strategy 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 of $18,000 per BTC, equivalent to a 249% annualized return. The second trade idea presented by QCP Capital 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. This trade can also be executed at zero cost. If the BTC 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 remain in a relatively narrow trading range in the current quarter. Novogratz anticipates that Bitcoin will trade within the range of approximately $55,000 to $75,000 until specific market events or circumstances push the prices higher. He mentioned the tailwinds experienced in the fourth quarter of the previous year and the first quarter of this year. Novogratz believes that Bitcoin’s trading range will continue until the Fed starts cutting rates due to a slowdown in the economy or until after the election, which he believes will bring clarity to the crypto regulatory landscape. On the other hand, 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.
Overall, QCP Capital remains optimistic about Bitcoin’s price momentum and expects a return to the highs of $74,000. Institutional demand for BTC continues to grow, with prominent asset managers investing in BTC spot ETFs. The firm’s trade ideas offer potential opportunities for investors to capitalize on a potential bullish trend. However, some experts, like Michael Novogratz, anticipate Bitcoin to trade in a narrow range in the current quarter, until specific market events or circumstances push the prices higher. Despite differing opinions, the overall sentiment is positive, with optimism surrounding Bitcoin’s future potential and the factors aligning favorably for a breakout in the near future.
