In its latest report, QCP Capital noted that with Bitcoin’s strong rise since the U.S. election, its price target of $100,000 to $120,000 is no longer out of reach. However, as the market prepares for its next leg up, here are some key trends and risk factors to keep an eye on:
🔻 Implied Volatility Declines: The market’s implied volatility continues to decline as large players sell calls on the upside and hedge downside risk by buying puts. Trading desks generally observe more selling of call options every time a new high is reached.
🔺 Leverage risk: The market is still highly leveraged, especially in the field of altcoins. A large number of leverage operations will push the perpetual funding rate to 50-100%. This means that for altcoins, the risk of deleveraging is particularly significant and can lead to wild swings.
💡 Systemic Shift: QCP Capital noted that Bitcoin’s potential strength reflects market expectations that Trump may return to the White House. The launch of its strategic BTC reserves and rotation from gold to BTC provide strong bullish support for Bitcoin.
📉 In this market environment, investors should be cautious about leverage risks and pay close attention to the price fluctuations of Bitcoin and other digital assets.
