Bitcoin ETF Will Send BTC Back To $44,000, Why This Trading Firm Is Betting On This Scenario
October 25 2023 - 1:00PM
NEWSBTC
The price of BTC continues to push higher, and the bullish momentum
remains intact as news around the Bitcoin ETF (Exchange Traded
Fund) improves overall sentiment. In the wake of the recent rally,
some trading firms doubled down on their bullish positions. Related
Reading: Galaxy Foresees Stellar 74% Bitcoin Price Surge In
Post-ETF Debut Year As of this writing, the price of Bitcoin stands
at $24,200 with sideways movement in the last 24 hours. The
cryptocurrency rose by over 20% the previous week, operating as the
top performer in the top 10 by market capitalization. Bitcoin ETF
To Trigger Larger Rally: What’s The Target? Via social media
platform X, trading desk QCP Capital disclosed their positions
coming into the rally. The firm longed Bitcoin volatility with
options contracts, taking some profits on their positions as the
cryptocurrency rallied. Still, the firm remains optimistic, holding
on to their calls due to expiry in December. By then, the firm
targets a BTC price above $38,000 to $44,000, based on the momentum
generated by a potential Bitcoin ETF approval. In the last week,
the news generated by this event has shifted market sentiment,
leading investors to a more favorable area. However, the firm
remains cautious about the US Securities and Exchange Commission
(SEC) approving a spot Bitcoin ETF in the short term. QCP Capital
stated: (…) we believe the SEC will avoid playing the role of
kingmaker, sticking with its own precedent set during the BTC/ETH
futures ETF approval process and will wait to approve multiple
managers at the same time. Nonetheless with this bullish break of
32k, we believe the market has started to price in an approval as
the base case. The only question now is when the approval will
happen. SEC To Avoid Kingmaking In Bitcoin ETF Approval. The
trading firm believes the financial instrument will get approved in
2024. The SEC will likely avoid favoring one firm to prevent
BlackRock or other asset managers from taking a large portion of
the clients and the trading volume, as when the future Bitcoin ETF
was approved. The firm believes the financial instrument could get
approved “much later than the market expects now.” As mentioned,
investors have begun pricing in any price action associated with
the ETF, which could lead BTC to another range until 2024. Related
Reading: Bitcoin’s Surge Shakes Up ETF World: Who’s Soaring And
Who’s Crashing? The firm cautioned players from taking late long
positions: (…) we are seeing stretched positive perp funding rates
especially on Deribit (BTC over 70% and ETH over 100%) as well as
elevated short-end ATM vols (BTC up to 75%!) – typically indicative
of an exhausted short-term move. Cover image from Unsplash, chart
from Tradingview
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