QCP Capital predicts bullish momentum that could see Bitcoin reach an all-time high of $74,000 in the coming months.
This follows an increase in BTC prices on May 15th, which was fueled by the Consumer Price Index (CPI) in April, which showed increased ETF inflows and a slight decline in inflation from the previous month.
Institutional adoption and bullish momentum
According to insights provided by QCP Capital, the US CPI numbers triggered a breakout across various risk assets, pushing BTC back above the $66,000 mark.
“We expect bullish momentum here, with a potential return to the $74,000 highs,” QCP Capital said.
They observed increased buying activity, with investors taking 100,000 to 120,000 BTC calls in December 2024. There is also widespread institutional adoption of major cryptocurrencies, with major asset managers such as Millennium and Schoenfeld allocating approximately 3% and 2% of their assets to: Identify Bitcoin ETFs using management (AUM).
Analysts at QCP Capital also said favorable market conditions, including adoption by sovereign and institutional investors, easing inflation pressures, and expectations for the upcoming US election, are contributing to the likelihood of a bull market resurgence. He emphasized.
QCP Capital recommends traders to adopt strategies like the bullish ERKO Seagulls. Designed to take advantage of price appreciation while mitigating downside risk, it offers investors the opportunity to participate in Bitcoin's potential bull market with minimal upfront costs.
For example, the June bullish ERKO Seagull offers a cost-neutral approach with a maximum payout of $18,000 per BTC if the spot price remains just under $88,000 at expiration. Similarly, August Seagull exhibits a similar risk-reward profile, potentially paying out $30,000 per BTC if the spot price approaches $100,000 by expiration.
Bitcoin soars as inflation eases
The Consumer Price Index, a comprehensive measure of the cost of goods and services at the point of sale in the United States, showed a slight decline in inflation compared to the previous month, according to a report released on May 15.
On Wednesday, Bitcoin soared after the April CPI announcement, with its price surging more than 7% to $66,567.91, its best performance since March 25. Bitcoin also surpassed its 50-day moving average for the first time since Bitcoin. April 13th.
Wednesday's surge pushed BTC up 7% for the week, the most significant gain since the last week of March, and reversed a month-and-a-half-long downward trend. According to data from CoinGecko, as of this writing, Bitcoin is trading at around $66,0007, showing an increase of 6% in the past 24 hours.
