QCP Capital analysts noted that derivatives traders have taken significant long positions in bitcoin options with a strike price of $67,000, ahead of the upcoming end-of-month expiry on July 26.
“Dealers are very long the Friday 26 end-of-July $67,000 strike, with the derivatives market definitely betting big on a bitcoin breakout heading into the U.S. elections,” QCP Capital analysts said.
The analysts added that there are indicators in the bitcoin options market of sizable institutional interest in December 2024 $100,000 calls. “This signals an even stronger conviction of a year-end rally as the odds of a Trump victory increase,” Friday’s QCP Capital report added.
Analysts say Trump win will benefit bitcoin
The analyst’s prediction of a bitcoin rally leading up to and following the U.S. presidential elections in November is based on the expectation that Donald Trump could win.
Standard Chartered Bank’s head of forex and digital assets research Geoffrey Kendrick considers Trump to be “bitcoin-positive.” In an early July analyst note, Kendrick stressed a positive correlation between the former president’s electoral odds and the price of bitcoin. “The logic here is that both regulation and mining would be looked at more favorably under Trump,” Kendrick said.
He added that if the incumbent Joe Biden stays in the race for the presidency, “bitcoin is a fantastic buying opportunity.” Also, in early June, Kendrick said would stick with his year-end price prediction of $150,000 and end-of-2025 forecast of $200,000 for bitcoin. “Notably, a $150,000 price by end-2024 would see bitcoin join the $3 trillion club in terms of market cap, following NVDA’s $3 trillion market cap which was reached yesterday,” he said.
Bitcoin has traded flat over the past 24 hours and is now trading at $64,059, as of the time of writing, according to The Block’s Price Page.
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