Key Points
- QCP Capital predicts a positive future for Bitcoin, based on increased interest in the options market.
- Expected Federal rate cuts could further boost the cryptocurrency market, according to a crypto executive.
Crypto trading firm QCP Capital has projected a positive future for Bitcoin (BTC) based on data from the options market. The firm stated in its recent update that it remains bullish on BTC due to significant call buying in December and March expiries.
Increased Interest in Options Market
Major funds are reportedly continuing to roll their long call positions for September, indicating a bullish sentiment for BTC. A surge in “long call” positions means that speculators expect the underlying asset, in this case BTC, to rise by the expiration dates.
After a significant drop to $49K on August 5th, BTC market stagnated for a couple of days. However, according to Quinn Thompson, founder of Lekker Capital, BTC surged to $60k on August 8th as there were no sellers as expected by the market.
Upcoming Fed Rate Cuts
Thompson downplayed the recession fears and stated that the upcoming Federal rate cuts could be the next positive market catalyst. He also pointed out that the recession was a Q2 event and the market is now looking forward to its first rate cuts in four years.
Meanwhile, the demand for BTC, especially from US investors, has strengthened this week. This is indicated by the Coinbase Premium Index, which has risen from negative to positive. This strong demand could potentially mean that BTC’s appreciation and recovery could extend.
However, despite the positive outlook, BTC has flashed some bearish signals. These could potentially unnerve some investors and traders, despite the expectation of further recovery.
