QCP Capital - one of the first digital asset companies in Singapore - expressed its optimism about the general mood in the market, citing several factors that indicate a positive outlook regarding the market, as it indicated in a recent note that forward points (the difference between the current exchange rate and the future exchange rate Expected) Bitcoin futures contracts recovered from their recent lows of 10% yesterday, meaning that traders were taking profits from their underlying trades by closing speculative positions on a decline in the price of Bitcoin. Therefore, there is a strong possibility that returns can exceed 15% when the right catalyst is in place.
Traders buy options contracts
Another positive factor QCP pointed to was the heavy buying of options contracts on June 13 observed yesterday, coupled with the significant increase in the funding rate, indicating that the market is positioning itself for what QCP refers to as a “positive surprise,” which means that Market participants expect positive developments that may lead to a significant upward movement.
With stock markets reaching unprecedented closing levels for the second day in a row, QCP believes that the unchanged Consumer Price Index (CPI) reading and the neutral outcome of the Federal Open Market Committee (FOMC) meeting may act as catalysts that push the crypto market to retest its previous highs.
In light of these positive conditions, QCP offers a trading idea centered around Exotic Return Knockout options (ERKO), especially ERKO options for June 28, because the risk-reward ratio is considered good and at a low price.
The execution price of the ERKO contract is only $68,000 and the exit level is at $75,000. If the price of Bitcoin is - even slightly - less than $75,000 when the contract expires, the return rate could reach 5.6 times the value of the initial investment.
On the other hand, one Bitcoin in the ERKO contract costs only $1,250 according to the Bitcoin price of $67,800.
