Bitcoin (BTC) has made a remarkable jump to $65,000, marking a significant 7.54% surge in just 24 hours after the CPI data release. This surge has caught the attention of QCP, a leading trading desk, which now predicts a further climb to $74,000, signaling strong institutional support for BTC in these changing times.
It seems like good days are coming, indeed! Read on to know how you can profit from it.
QCP, in a message on Telegram, highlighted how recent U.S. Consumer Price Index (CPI) numbers have pushed Bitcoin and other risk assets above the $66,000 mark. This upward momentum has been accompanied by a flurry of buying activity, especially in BTC call options set for December 2024, totaling a significant 100,000-120,000 BTC.
This substantial investment reflects a high level of confidence in Bitcoin’s potential for further growth.
Adding to Bitcoin’s credibility, major asset managers like Millenium and Schonfeld have allocated 3% and 2% of their Assets Under Management (AUM) to Bitcoin spot ETFs, showing that Bitcoin is becoming a recognized asset class in institutional circles.
QCP points to several factors driving this bullish breakout, including strong support from governments and institutions, easing inflation, and the upcoming U.S. elections. These factors combined suggest a potential return to the bull market for Bitcoin.
Amid this optimistic backdrop, QCP has introduced strategic ways to benefit from the expected upward trend.
The June Seagull strategy expires on June 27, 2024. Selling a 60k Put and purchasing a 70k Call with an 88k Knock-out level costs nothing. If Bitcoin’s price approaches but doesn’t surpass $88,000 by expiration, the maximum payout is $18,000 per BTC or 249% annually. The potential risk is that the USD invested converts to BTC at $60,000 if Bitcoin falls below $60,000.
Similarly, the August Seagull strategy, expiring on August 30, 2024, entails selling a 58k Put and acquiring a 70k Call with a 100k Knock-out level, again at zero cost. Traders could potentially gain $30,000 per BTC, or 176% annually, if Bitcoin nears but falls short of $100,000 at expiry. But breaking below $58,000 could mean converting invested funds into Bitcoin at the lower price.
QCP’s Seagull strategies offer an attractive proposition, providing significant payouts if Bitcoin continues its upward trajectory, while also managing risk effectively.
Are you considering using options strategies like the seagull? Why or why not? Let us know!
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