QCP Capital Predicts Bitcoin Price to Reach Record High by the End of March
Bitcoin ETF inflows are skyrocketing, with BlackRock’s iShares Bitcoin ETF attracting $500 million in just one day. In addition, there is a surge in the purchase of BTC call options, particularly for options with strike prices between $60,000 and $80,000. Notably, big institutions like Fidelity are now allocating some of their conservative ETFs to cryptocurrencies. As a result, Bitcoin ETFs are starting to compete with traditional assets such as gold.
The cryptocurrency world is currently experiencing a perfect storm as the rally of Bitcoin gains momentum. This rally is supported by impressive inflows into BTC spot Exchange-Traded Funds (ETFs). With daily injections ranging from $500 million to $650 million, liquidity is surging into spot ETFs. This surge in liquidity could potentially lead to a surge in Bitcoin’s value, surpassing historical highs by next month.
The launch of spot Bitcoin ETFs has become a financial powerhouse, attracting billions of dollars and driving the overall cryptocurrency market to surpass the $2 trillion mark, a level not seen since April 2022. Just in the last 24 hours, Bitcoin has seen a nearly 3% surge. The iShares Bitcoin ETF from BlackRock alone collected an impressive $500 million in a single day, highlighting the strong institutional interest in Bitcoin. QCP Capital reports that these ETFs are acquiring an average of 10,000 to 13,000 BTC daily, further solidifying Bitcoin’s appeal among institutional investors.
The surge in BTC call options purchases is not limited to ETFs. Investors are showing a pervasive bullish sentiment by investing approximately $10 million in call options with strike prices between $60,000 and $80,000. This indicates that the market is betting on Bitcoin’s upward trajectory.
Mainstream acceptance of cryptocurrencies is also gaining traction, with big institutions like Fidelity allocating some of their conservative ETFs to cryptocurrencies. This acceptance is further evidenced by Bitcoin ETFs now competing with traditional assets like gold.
The resurgence of US equity markets has also provided a boost to the crypto market rally. Despite initial selling pressure following unsatisfactory CPI data, Wall Street indices have rebounded, led by tech giants. This positive momentum has spilled over into the crypto market, with Bitcoin trading at $52,431 at the time of writing.
While the current bullish momentum is undeniable, it’s important to note the shifting market sentiment. The probability of a rate pause next month has surged to 91.5%, a significant shift from expectations of a rate cut just one month ago. Looking ahead to May, traders foresee a 34% chance of a rate cut and a notable 63.3% likelihood of another rate pause, according to the CME FedWatch tool.
These factors contribute to the bullish outlook for Bitcoin, with QCP Capital predicting new all-time highs by the end of March. This positive sentiment reflects growing investor confidence in both the crypto and traditional markets.
In conclusion, the combination of ETF inflows, bullish derivatives, mainstream acceptance, and a resilient equity market paints a promising future for Bitcoin.