In a recent market analysis, QCP Capital has highlighted significant bullish momentum in the crypto market, particularly for Bitcoin (BTC) price. However, QCP Capital expects Ethereum (ETH) to grab the spotlight. In their report, they highlighted that Bitcoin Exchange-Traded Funds (ETFs) has experienced a robust 15-day inflow streak.
QCP Capital Prediction On Bitcoin & Ethereum
The Bitcoin ETFs witnessed an influx of $886.1 million on Tuesday, June 4. This marked the second-largest inflow since its inception. Moreover, this substantial inflow has been accompanied by notable activity in the options market.
Furthermore, QCP Capital observed considerable buying interest in Bitcoin call options expiring in June. Hence, this trend indicates strong bullish sentiment. Moreover, the Bitcoin price is positioning for a potential breakout above the all-time high of $74,000 this month.
The firm’s analysis suggests that market participants are gearing up for a decisive move, reflecting confidence in Bitcoin price’s continued upward trajectory. However, while Bitcoin has been at the forefront of this recent surge, Ethereum has been trailing behind.
Despite this lag, QCP Capital anticipates that ETH could soon catch up and possibly even outperform the Bitcoin price surge. The rally will particularly be witnessed when the Spot Ethereum ETF begins trading, stated QCP Capital. The firm posits that the introduction of an Ethereum ETF could trigger significant rotations of funds from Bitcoin to Ether, providing additional upward momentum for the latter.
Also Read: Bull Run: Can Crypto Market Reach $3 Trillion, With Bitcoin Price Above $71,000?
Advise On Capitalizing ETH Surge
QCP Capital has also proposed a strategic trade to capitalize on this expected Ethereum price rally. They recommend achieving high convexity exposure to an Ethereum price increase in the near term through Zero Cost ETH September Knock-In, Knock-Out (KIKO) options.
The trade structure involves a short put strike at $3,500 with a knock-in level at $3,000, and a long call strike at $4,000 with a knock-out level at $6,400. This setup offers a maximum payout of 219.55% per annum or $2,400 per Ethereum if the spot price expires just below $6,400.
However, the cost of this trade is zero, but there is a downside risk. If the spot price falls below $3,000 at expiry, the investor must buy ETH at $3,500. As of now, Ethereum price is hovering around $3,700, indicating a bullish outlook in line with QCP Capital’s analysis.
Also Read: Bitcoin At $72K Sets $1.5B Liquidation Cascade, Willy Woo Predicts What’s Next
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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