QCP Capital analysts forecast Bitcoin’s momentum to surpass previous records by the end of March 2024, powered by substantial ETF inflows and options market activity.
Bitcoin Breaks $50,000: A Two-Year High
After a two-year hiatus, Bitcoin has once again shattered the $50,000 ceiling, signaling a bullish outlook among investors. Market experts from QCP Capital suggest that this trend is not only here to stay but is likely to propel BTC to new all-time highs by March 2024.
ETF Inflows Fueling the Fire
Key to this optimistic forecast are the impressive daily inflows into BTC spot ETFs, ranging between $500 million and $650 million. This translates to a staggering daily purchase of 10,000 to 13,000 BTC. Analysts highlight that as global liquidity shifts towards spot ETFs, such trends are expected to persist, drawing mainstream investors into the crypto fold.
Mainstream Adoption on the Horizon
The growing confidence in cryptocurrencies is evident as established financial players like Fidelity integrate crypto assets into their portfolios. With Fidelity’s announcement of a 1-3% cryptocurrency allocation in their conservative ETFs, the crypto market is gaining unprecedented exposure to conventional investors.
Options Market Signals Strong Confidence
Adding to the bullish sentiment is the active buying in the BTC call options market. QCP Capital notes a significant investment of around $10 million in insurance premiums for strikes ranging from 60,000 to 80,000, set to expire between April and December. This options activity underpins the belief that BTC’s ascent will continue unabated.
Looking Ahead
The start of the week was marked by Bitcoin’s climb over the $50,000 mark for the first time since December 2021. It continued its rally, breaching the $52,000 level on February 14, as per CoinMarketCap data. This upward trajectory is seen by QCP Capital as just the beginning of a period of sustained growth, with all signs pointing to a new era of all-time highs for Bitcoin.
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