Bitcoin Price Rising to $74K But Ethereum Shows More Potential: QCP Capital
In a recent market analysis, QCP Capital highlighted significant bullish momentum in the crypto market, specifically for the Bitcoin (BTC) price. However, QCP Capital expects Ethereum (ETH) to take center stage. In their report, they highlighted that Bitcoin Exchange Traded Funds (ETFs) experienced a strong 15-day entry streak.
QCP Capital Forecast for Bitcoin and Ethereum
Bitcoin ETFs witnessed an inflow of $886.1 million on Tuesday, June 4. This was the second largest entry since its inception. Moreover, this significant entry was accompanied by significant activity in the options market.
Additionally, QCP Capital observed significant buying interest in Bitcoin call options expiring in June. Therefore, this trend indicates a strong bullish trend. Moreover, Bitcoin price is poised for a potential break above its all-time high of $74,000 this month.
The firm’s analysis shows that market participants are preparing for a decisive move, reflecting confidence in the ongoing upward trend of Bitcoin price. However, while Bitcoin is at the forefront of this latest rise, Ethereum is following behind.
Despite this delay, QCP Capital predicts that ETH could soon catch up with the Bitcoin price increase and possibly outperform. QCP Capital stated that the rally will be seen especially as the Spot Ethereum ETF begins trading. The firm suggests that the introduction of the Ethereum ETF could trigger a significant rotation of funds from Bitcoin to Ether, providing additional bullish momentum to the latter.
Also Read: Bull Run: Could Crypto Market Reach $3 Trillion With Bitcoin Price Above $71,000?
Advice on Converting ETH Increase into Capital
QCP Capital also proposed a strategic trade to take advantage of this expected rise in Ethereum prices. They recommend gaining high convex exposure to Ethereum price increase in the near term via Zero Cost ETH September Knockout, Knockout (KIKO) options.
The trade structure includes a $3,500 short call strike with a $3,000 knockout level and a $4,000 long call strike with a $6,400 knockout level. This setup offers a maximum payout of 219.55% per year, or $2,400 per Ethereum, if the spot price ends just below $6,400.
However, the cost of this trade is zero but there is a downside risk. If the spot price falls below $3,000 at expiration, the investor must buy ETH at $3,500. As of now, Ethereum price is hovering around $3,700, indicating a bullish outlook in line with QCP Capital’s analysis.
Also Read: $72K Bitcoin Sets Stage for $1.5B Liquidation, Willy Woo Predicts What’s Next
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