BTC Price: Institutions Bet Big On $100,000 Bitcoin Call Options

QCP Capital recently provided a comprehensive overview of the current state and institutional sentiment surrounding Bitcoin (BTC) price. Despite a backdrop of significant Bitcoin payout from the Mt. Gox creditors and substantial selling pressure from the German government, the cryptocurrency has shown remarkable resilience. Hence, this has sparked notable institutional interest in high-value call options. Institutional interest particularly concerns the $100,000 strike price by the end of the year.

QCP Capital Analysis On BTC Price

The Bitcoin market has demonstrated a robust performance despite several supply pressures. Recently, the German government dumped $2.88 billion worth of Bitcoin, totaling nearly 50,000 BTC, into the market. Additionally, the Mt. Gox repayment process, which involved shifting over $6 billion worth of Bitcoin to over 13,000 creditors, added to the supply surplus.

Despite these substantial supply additions, the BTC price has remained resilient, trading within a range of $61,000 to $71,000. According to QCP Capital, there is significant institutional interest in Bitcoin, particularly in December $100,000 call options. This interest signals a strong conviction among institutional investors for a potential year-end rally.

The call options are a bet that Bitcoin will surge past $100,000 by December. Thus, it reflects optimism about a significant price breakout. This optimism is further fueled by the upcoming US elections. Due to the recent changes in the political landscape, market participants are betting on increased volatility and potential price surges.

With the market’s current structure, where perpetual funding rates have returned to neutral and volatility has been drifting lower, Bitcoin has settled into a familiar trading range. Hence, QCP Capital noted that dealers are particularly long on the $67,000 strike options expiring on July 26. Therefore, market participants are bracing for BTC price’s rebound to the $67,000 level.

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Strategic Trade Ideas By QCP

As of writing, the Bitcoin price traded at $64,170.20, losing 1.24% on Friday, July 19. Despite the decline, the crypto has shown exceptional resilience to volatility owing to political changes and other factors. Moreover, BTC has gained over 12% over the last seven days, rebounding from a low of $57,000.

QCP Capital has recommended a Principal Protected Range Accrual (PPRA) strategy as an optimal short-term approach before the anticipated breakout. This strategy involves receiving a 27% annual coupon in USD if Bitcoin trades between $61,000 and $71,000 during the observation period. The PPRA matures on October 11, 2024, with weekly coupons starting from July 26.

However, traders and investors are encouraged to always conduct their own research before following any strategies. Meanwhile, Binance CEO Richard Teng also weighed in on the current market conditions. He emphasized the cyclical nature of markets and the importance of a long-term investment horizon.

In addition, Teng highlighted that it has only been three months since the recent Bitcoin Halving event. The Halving, historically known to precede substantial BTC price increases, could play a major catalyst in coming months.

He referenced past Bitcoin Halving events where BTC saw significant gains a year later: 7,043% in 2013, 289% in 2017, and 559% in 2021. Hence, he expects a similar surge to follow once the crypto market exits the summer lull. Furthermore, Bitcoin maximalists like Robert Kiyosaki have also offered a $100,000 target for BTC price by 2024.

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