Bitcoin
Bitcoin Options Traders Are Betting on a Price Breakout Ahead of US Elections: QCP Capital
Concept of virtual money and digital cryptocurrency.
O Bitcoin price has been on a tear for the past seven days, returning to the $61,000-$67,000 zone where it spent most of Q2. This positive streak of form comes despite FUD (fear, uncertainty, and doubt) due to speculation over Mt. Gox’s customer refund.
Interestingly, recent trading data has led QCP Capital, a major trading data firm, to suggest that Bitcoin may just be warming up for an even bigger price rally. According to the firm’s analysts, the leading cryptocurrency looks poised for significant price growth ahead of the US elections.
Will BTC price reach $100,000 by the end of the year?
Unsurprisingly, the Bitcoin price rise from under $60,000 to as high as $67,000 last week has been one of the hottest topics of discussion among investors. Analysts at QCP Capital are among the latest set of experts to weigh in on the market leader’s recent price action.
According to QCP analysts, BTC’s resilient upward price movement reflects how the market may have “shaken off” most of its concerns. As a result, the leading cryptocurrency may be gearing up to continue its bull run, having spent most of the last quarter in consolidation.
QCP analysts pointed in the report that the perpetual funding rate is back in a neutral position, signaling a balanced sentiment among traders. For context, the funding rate refers to a periodic payment exchanged between buyers and sellers in perpetual futures contracts.
Furthermore, QCP Capital noted that the Bitcoin spot market could persist in the $61,000 to $67,000 range in the near term, especially with traders holding substantial long positions at the $67,000 strike on July 26. All in all, investors appear to be betting big on a price rally ahead of the US Elections.
Furthermore, there has been steady and significant institutional interest in $100,000 calls in December. This suggests growing confidence in the potential for a year-end rally for Bitcoin, especially with the increasing chances of a Donald Trump victory in the upcoming election.
It is worth mentioning that the price of Bitcoin skyrocketed after the assassination attempt on the former US President. This price movement was linked to the increased odds of victory for Donald Trumpwho has been a staunch supporter of the leading cryptocurrency in recent months.
Bitcoin Price in Brief
At the time of writing, the price of Bitcoin continues to hover around $66,660, reflecting an increase of over 5% in the past day. According to data from CoinGecko, BTC is up over 16% in the past week.
Featured image from iStock, chart from TradingView