QCP Capital: Will Bitcoin’s Q4 Rally Repeat the Bull Market of 2020

Bitcoin breached the $55,000 mark this week on strong fundamentals and is closing in on its all-time high of $64,000 set earlier this year. But the question is, will the fourth quarter of 2021 be like the bull market of 2020, where bitcoin posted a nearly 180% rally? Maybe, says Singapore’s QCP Capital. 

In a note posted on its Telegram Thursday afternoon, QCP Capital said that the market is “hopeful” a similar rally will occur during the fourth quarter, as bitcoin is up 16% since the start of the week. QCP says that the “speed and size of the move has been surprising” and was likely accelerated by short squeezes on positions that were short bitcoin.

In addition, QCP noted that the stabilization of the Evergrande situation, and warm signals that bitcoin ETFs might soon be approved in the US are reasons for market optimism. 

The fund also points out that institutional interest in bitcoin is once again driving price velocity, pointing to significant increases in open interest on CME Bitcoin Futures, an institutional focused exchange. 

“The premium versus spot of the CME futures has been the highest among the major exchanges This is noteworthy as the CME futures premiums are typically compressed due to the cash-and-carry spread trades that institutional players like to put on. The unusually large premium indicates an overwhelming amount of outright buying,” QCP wrote. 

Source : blockworks.co