Bitcoin Price Prediction: $130K by September?
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QCP Capital, a Singapore-based trading desk, observes a significant increase in September $130,000 Bitcoin call options, suggesting large investors anticipate a price surge. This bullish sentiment contrasts with Bitcoin's current price hovering around $105,000. The options market's activity indicates that despite low volatility and a relatively calm spot market, significant buying of long-dated call options is taking place. This strategy is deemed attractive due to the low cost of acquiring upside protection against potential macro-economic volatility. The firm highlights that the current low volatility and flat skew make buying these options particularly inexpensive. Several factors could contribute to increased volatility and potentially drive Bitcoin's price higher. These include the upcoming US jobs report, potential shifts in Federal Reserve policy, and ongoing trade tensions, particularly the potential for renewed tariff disputes. While QCP Capital doesn't explicitly endorse the trade, they emphasize the asymmetry of the situation: the potential for significant upside outweighs the relatively low cost of the options. The firm points to reduced volatility in equities and Chinese government bonds as indicative of broader risk aversion, suggesting potential for future volatility which could benefit Bitcoin. The report concludes that the unusual activity in the options market, specifically the high volume of September $130,000 calls, is a strong signal, though the overall direction of Bitcoin's price remains uncertain pending several key economic events.
(Source: https://www.newsbtc.com/bitcoin-news/bitcoin-130000-in-september-smart-money-loads-up/)
