btc price continues to rise and bullish momentum remains intact as bitcoin ETF (Exchange Traded Fund) news improves overall sentiment. Following the recent rally, some trading firms doubled down on their bullish positions.
At the time of writing, the price of bitcoin stands at $24,200 with a sideways movement in the last 24 hours. The cryptocurrency rose more than 20% in the previous week, ranking as the top performer among the top 10 by market capitalization.
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Via social media platform X, trading desk QCP Capital revealed their positions entering the rally. The company longed for bitcoin‘s volatility with options contracts, making some profits on its positions as the cryptocurrency rallied.
Even so, the firm remains optimistic and maintains its purchase options that expire in December. By then, the company is targeting a btc price above $38,000 to $44,000, depending on momentum generated by a possible approval of a bitcoin ETF.
In the last week, the news generated by this event has changed market sentiment, moving investors into a more favorable zone. However, the company remains cautious about the US Securities and Exchange Commission (SEC) approving a bitcoin spot ETF any time soon.
QCP Capital stated:
(…) we believe that the SEC will avoid playing the role of kingmaker, sticking to its own precedent set during the btc/eth Futures ETF approval process and will wait to approve multiple managers at the same time. However, with this bullish breakout of 32k, we believe the market has begun to price in a pass as a base case. The only question now is when approval will occur.
The SEC will avoid kingmaking in bitcoin ETF approval.
The trading firm believes the financial instrument will be approved in 2024. The SEC is likely to avoid favoring one firm to prevent BlackRock or other asset managers from grabbing a large share of clients and trading volume, such as when approved the future bitcoin ETF.
The company believes that the financial instrument could be approved “much later than the market expects.” As mentioned, investors have begun to price in any price action associated with the ETF, which could take btc into another range through 2024.
The signature warned players take late long positions:
(…) we are seeing positive and stretched criminal funding rates, especially on Deribit (btc over 70% and eth over 100%), as well as elevated short-term ATM volatilities (btc up to 75%! ), which generally indicates an exhausted short position. term movement.
Cover image from Unsplash, chart from Tradingview
