QCP Capital is optimistic about the current market sentiment, suggesting that there may be an “upside surprise” on the horizon. They have observed several indicators pointing towards a potentially bullish outlook for the market.
One positive sign highlighted by QCP is the recent bounce in BTC futures swap points, which rose by 10% and showed a strong rally. This indicates that traders have been closing their short futures positions to take profits on their basis trades. If the right catalyst emerges, there is a chance that yields could surpass the 15% mark.
Additionally, QCP noted a significant increase in the buying of 13-Jun calls and funding rates, suggesting that the market is positioning itself for a potential positive development that could lead to a substantial upward movement in prices.
With equity markets consistently hitting record highs and the prospect of an inline CPI print and neutral outcome from the FOMC meeting, QCP believes that the crypto market could retest its previous highs. They recommend considering ERKOs as a trade idea, with the BTC 28-Jun Call ERKO presenting an attractive opportunity with a favorable risk-to-reward ratio and minimal cash outlay.
In other news, Bitcoin responded positively to the recent CPI results for May, which surprised economists by remaining flat. This data, which showed a slight decrease from April’s growth, led to a nearly 4% increase in Bitcoin prices to $69,400 over the past 24 hours. The lower-than-expected inflation figures are seen as favorable for Bitcoin, as concerns about rising inflation had previously impacted its value.
Market participants are now anticipating fewer interest rate cuts, with expectations shifting to only one or two cuts by the end of the year. The recent inflation data has had a notable impact on Bitcoin prices, with traders looking for looser monetary conditions to drive the next wave of the crypto rally towards record prices.