Singapore-based cryptocurrency trading firm QCP Capital analysts have predicted a potential bullish momentum that could drive Bitcoin price back to the $74,000 level. According to their forecast, the firm observed significant purchases of $100,000 to $120,000 Bitcoin call options for December 2024, indicating strong investor interest in this upward trend.
Furthermore, the most recent United States Consumer Price Index (CPI) report, published earlier this week, indicated a slight easing of inflation in April, declining from 3.5% to 3.4%. This trend may strengthen the Federal Reserve’s inclination to initiate rate cuts later in the year. As a result, the United States CPI figures caused a breakout from the previous range across various risk assets. Bitcoin, in particular, has subsequently climbed back above the $66,000 mark.
QCP Capital further highlights the increasing institutional demand for Bitcoin, citing large asset management firms Millennium Management and Schonfeld, which have reportedly allocated around 3% and 2% of their Assets Under Management (AUM) to Bitcoin spot exchange-traded funds (ETFs).
Millennium Management Holds $1.94B Worth Of Spot BTC ETFs In Q1 2024
Millennium Management, for example, held $1.94 billion worth of spot Bitcoin ETFs by the end of the first quarter of 2024. This amount equates to 3% of the AUM, totaling approximately $64 billion. The company diversified its investments across various investment products provided by ARK 21Shares, Bitwise, Grayscale, iShares, and Fidelity. Additionally, the Wisconsin Investment Council has recently disclosed investments in Bitcoin ETFs totaling $163 million. At the conclusion of 2023, the council had access to $156 billion in funds.
“The stars seem to be aligning on this breakout with significant sovereign and institutional adoption, abating inflation, and upcoming US elections. Is this the resumption of the bull market?” noted the company in its daily review.
At the time of writing, Bitcoin is trading at $66,166, marking a 6.40% increase over the past 24 hours, as per CoinMarketCap data. Conversely, its trading volume surged by over 57% to reach $40.3 billion within the same timeframe. Meanwhile, the cryptocurrency’s market capitalization is recorded at $1.29 trillion.
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