Cryptocurrency research firm QCP Capital reported in a recent analysis that there has been a significant increase in the price of Bitcoin (BTC) due to strong spot demand.
Last night, BTC briefly reclaimed the $68,000 level before rallying 2.20% and settling in the $67,000 range.
QCP Capital noted that there was significant movement in the options market during US trading hours, with intense buying interest in long-term options. In particular, 600 contracts were traded at $120,000 for the March 28 expiration. According to QCP, this indicates a revival of optimistic and long-term buyers and increased confidence that prices will rise further as Bitcoin continues its upward momentum.
The firm also observed that BTC spot ETFs added $456.90 million yesterday, snapping a four-day winning streak. These strong and consistent inflows could signal further rallies as Bitcoin approaches its all-time high of $73,790, QCP said.
Looking ahead, QCP Capital identified the upcoming US elections as the next major catalyst for Bitcoin and the broader cryptocurrency market. However, the firm noted that the market remains uncertain about BTC’s post-election trajectory. Options expiring closer to the election are trading at a 10% premium to other maturities, reflecting the heightened anticipation and uncertainty. Any changes in polls or shifts in campaign rhetoric could have a greater impact on Bitcoin’s spot prices as the election approaches, QCP said.
*This is not investment advice.