QCP Capital Sees Bitcoin Reclaiming $74K Highs – Here’s Why BTC Could Continue Its Rally
May 16 2024 - 3:00PM
NEWSBTC
QCP Capital, a prominent institutional-focused firm, has recently
projected that Bitcoin could revisit its peak price levels,
potentially reaching up to $74,000 shortly. This prediction follows
the latest United States Consumer Price Index (CPI) data, which has
significantly boosted risk assets. The firm noted that the positive
surge in the market is partly due to the renewed buy-side demand,
as evidenced by the buying patterns that resemble those of
Exchange-Traded Fund (ETF) market makers. Related Reading: Most
Important Bitcoin Indicator Nears Bullish Flip: $150,000 Soon?
Institutional Inflows And Market Indicators Point To A Bitcoin
Bullish Trend In a detailed analysis shared through their Telegram
channel, QCP Broadcast, the firm stated: “We expect bullish
momentum here that could take us back to the highs of 74k.”
Substantial institutional interest in Bitcoin supports this
sentiment, as large asset managers like Millennium and Schonfeld
have allocated about 3% and 2% of their Assets Under Management
(AUM), respectively, to spot BTC ETFs. The optimism surrounding
Bitcoin is not just theoretical but backed by significant market
activity. For instance, inflows into spot Bitcoin ETFs in the US
reached a two-week high of $303 million as of May 15th, signaling a
robust renewal of institutional confidence. Fidelity’s FBTC fund
led this influx with $131 million, followed by Bitwise’s BITB fund,
which saw $86 million, marking its highest since early March.
Grayscale’s GBTC, which had experienced outflows for four months,
reversed this trend with a $27 million inflow. Yesterday, May 15,
the total net inflow of Bitcoin spot ETFs was $303 million.
Grayscale ETF GBTC had a single-day net inflow of $27.0466 million,
Fidelity ETF FBTC had an inflow of $131 million, and Bitwise ETF
BITB had an inflow of $86.2578 million. https://t.co/npjWVH3bMi —
Wu Blockchain (@WuBlockchain) May 16, 2024 Further underlining this
bullish sentiment, Millennium Management holds a roughly $2 billion
Bitcoin ETF portfolio, making it the largest holder of specific
Bitcoin ETFs like BlackRock’s IBIT and Fidelity’s FBTC. Other hedge
funds, including Paul Singer’s Elliott Capital and Apollo
Management Holdings, have also disclosed significant holdings in
Bitcoin ETFs, showcasing the growing institutional interest in
Bitcoin. Market Performance And Future Outlook Bitcoin’s market
performance has been quite notable. It has increased nearly 10%
over the past week, including a 2.7% rise in the last 24 hours
alone. QCP Capital attributes this trend to several factors,
including significant “sovereign and institutional adoption, easing
inflation concerns, and the upcoming US elections,” all of which
contribute to a favorable market outlook. The positive sentiment is
also partly due to the CPI data released on May 15th, which met
expectations and eased concerns about inflation. This is crucial as
lower inflation rates influence the Federal Reserve’s decisions on
interest rates, making riskier assets like Bitcoin more attractive
to investors seeking higher yields. James Coutts, Chief Crypto
Analyst at Realvision, also cited the Global Money Supply (M2)
index as a critical indicator of Bitcoin’s price movements.
According to Coutts, the M2 money aggregates, which include cash
and checking deposits and are easily convertible near money, are
central to understanding liquidity flows within the global
financial system. He noted, “The money stock often moves in one
direction, with significant drops like those seen in 2022 being
rare and typically brief.” Related Reading: Bitcoin Breaks Free:
Emerging from Bearish Sentiment, Crypto Market Optimism Rises
Coutts predicts that any significant break above Bitcoin’s all-time
highs could pave the way for it to reach around $150,000 in this
cycle. He remarked, “Watch the 101/102 level on DXY. If that
breaks, then we should see ~$150k BTC this cycle,” emphasizing the
interplay between liquidity and market cycles. Featured image from
Unsplash, Chart from TradingView
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