QCP Capital, one of the leading crypto investment firms in the Asian region, has released a new report stating that the cryptocurrency market has stabilized after last week’s sharp movements, but caution remains high as implied volatility remains high. The market is currently on alert for major events this week, such as the debate between US Presidential candidates Donald Trump and Kamala Harris and the release of US Consumer Price Index (CPI) data.
Bitcoin Continues to Maintain Bullish Expectations
After last week’s sharp decline, sentiment in the cryptocurrency market shifted toward downside risk, and by October, risk had reversed for Bitcoin (BTC) and Ethereum (ETH), with a trend toward put options. This trend suggests that investors are reacting to the ongoing uncertainty and trying to hedge against possible price declines.
Despite the short-term turbulence and potential for sharp price movements, QCP Capital remains structurally bullish on the cryptocurrency market, with many investors taking advantage of recent lows to take long-term bullish positions, the report said.
The company highlighted that there was significant buying interest in call options expiring on March 28, 2025, at strike prices of $85,000, $100,000, and $120,000 for BTC, indicating confidence in a major price recovery in the coming years.
The Company Recommends Using Zero Cost Trading Strategy
QCP Capital has proposed a trading strategy using the ZERO-cost ERKO Seagull structure as a way to effectively express its bullish outlook on BTC. The strategy the company proposes involves buying a call option at $70,000 with a target of $100,000 and buying a put option at $42,000, effectively reducing its cost to zero. This strategy offers a potential maximum payout of 239% per year, or $30,000 per BTC, if the spot price is just below $100,000 at expiration. Let’s add that the spot reference price for BTC at the time of the trading strategy was $55,200.
QCP Capital’s continued bullish outlook parallels the market’s recent reaction to lows, with significant buying interest emerging as Bitcoin’s price rebounded from the $52,500 level. While it remains unclear whether the market has reached a definitive bottom, the firm added that some institutional investors are looking at the opportunity to increase their bullish positions for December and March maturities.
