QCP Capital analysts noted that derivatives traders were taking significant long positions on Bitcoin options with a strike price of $67,000 ahead of the July 26 end-of-month expiration.
“Dealers are looking very long term at the $67,000 level seen on Friday, July 26, and the derivatives market is betting big on a Bitcoin rally ahead of the U.S. election,” QCP Capital analysts said.
The analysts added that there is significant institutional interest in the December 2024 $100,000 call in the bitcoin options market. “This is a sign that confidence in a year-end rally is growing stronger as the odds of a Trump victory increase,” a QCP Capital report Friday added.
Analysts Say Trump Victory Would Be Good for Bitcoin
One analyst predicted that Bitcoin would rally around the US presidential election in November, based on expectations that Donald Trump could win.
Jeffrey Kendrick, head of foreign exchange and digital asset research at Standard Chartered Bank, sees Trump as “positive for bitcoin.” In an analyst note in early July, Kendrick highlighted a positive correlation between the former president’s election odds and bitcoin’s price. “The logic here is that regulation and mining will be viewed more favorably under Trump,” Kendrick said.
He added that if incumbent Joe Biden remains in the race, “bitcoin is a fantastic buying opportunity.” Earlier in June, Kendrick also said he would stick to his year-end price prediction for bitcoin of $150,000 and his $200,000 prediction for the end of 2025. “If the price gets to $150,000 by the end of 2024, bitcoin will join the $3 trillion club, following NVDA’s $3 trillion market cap yesterday,” he said.
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