Singapore-based cryptocurrency trading firm QCP Capital shared its latest analysis, highlighting that despite Bitcoin’s recent surge to record highs, market volatility has remained relatively stable. This is largely due to large profit-taking on long call options, indicating that traders were well-prepared for this rally.
Furthermore, Bitcoin’s recent breakout from key resistance levels and a multi-month trading range has driven market sentiment to enter a state of euphoria, with funding rates on perpetual contracts reaching high levels and basis yields hitting a seven-month high. Although QCP analysts hold a bullish long-term outlook, they caution against potential short-term pullbacks, particularly from highly leveraged positions. Historically, such sharp increases in basis yields have been short-lived.
In the short term, QCP anticipates Bitcoin’s spot market to hover around these levels, with volatility potentially easing. However, this week’s macroeconomic events, including the US Consumer Price Index (CPI) on Wednesday, the Producer Price Index (PPI) on Thursday, and Federal Reserve Chair Jerome Powell’s speech on Friday, could influence market conditions. These events may provide more insight into the anticipated 25 basis-point rate cut expected in December.
Bitcoin Hits All-Time High Following Trump Election Victory, Driving Crypto Market Cap Above $2.7T
Donald Trump’s recent US presidential election victory has coincided with a strong rally in the cryptocurrency market, with Bitcoin reaching a new all-time high and the overall cryptocurrency market cap surpassing $2.7 trillion, a year-to-date peak.
At the time of writing, Bitcoin is trading at $81,821, marking a 2.44% increase in the last 24 hours. The cryptocurrency recorded an intraday low of $78,790 and a high of $82,368, setting a new record. Bitcoin’s market capitalization now stands at approximately $1.62 trillion, while its market dominance rose by 0.84% to 58.21%, according to data from CoinMarketCap.
The recent upward momentum in Bitcoin also aligns with notable inflows into Bitcoin spot exchange-traded funds (ETFs), with SoSoValue data indicating around $1.63 billion in inflows over the past week.
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