Bitcoin soars to $94,500 thanks to Trump: QCP Capital
Bitcoin reaches $94,500 thanks to Trump's slowdown in political pressure. QCP Capital analyses the implications for the market.
Singapore-based trading firm QCP Capital released a new report highlighting how President Trump is easing political pressure on key economic issues. Bitcoin posted impressive gains, reaching a high of $94,500.
According to QCP Capital's report, Trump has temporarily dismissed criticism of Federal Reserve Chairman Jerome Powell and softened rhetoric towards China. Despite continuing to show frustration with the Fed's slow pace in cutting interest rates, the president assured investors on Wednesday morning that Powell's tenure is not at risk. In a significant change of course, Trump also acknowledged that the 145% tariff on Chinese goods is "very high"and promised that "it will be reduced significantly".
Markets reacted positively to this lull. Bitcoin extended its rally for the fifth consecutive day, as overall risk sentiment stabilised.
Historical High
When Bitcoin rebounded to $94,000, it became for a short time the fifth largest asset in the world by market capitalisation, surpassing Alphabet (Google) for the first time. Although the price has since dropped to $93,000, placing seventh, the symbolic milestone reflects the continued maturation of the asset.
This momentum is fuelled by increasing institutional participation, with new players such as Twenty One Capital reinforcing Bitcoin's position among the world's most valuable assets.
Attention to Position
With Bitcoin steadily above $90,000, sentiment is becoming increasingly bullish. According to QCP Capital, trade flows are dominated by call options at $95,000, with expiry dates between late April and May - a sign of tactical interest in further gains.
The call option strategy allows traders to obtain the right (but not the obligation) to buy Bitcoin at a predetermined price of $95,000. If the market price exceeds that level, investors can make significant profits by paying only a small premium for the option. This is an attractive strategy for those who anticipate further rises but want to limit their risks.
That said, with macroeconomic risks temporarily mitigated and trade tensions cooling, Bitcoin could consolidate in a narrow range between $90,000 and $94.500, waiting for a catalyst to push it to the coveted $100,000 mark.
Considering the rapidity of the recent rally, QCP Capital is maintaining a tactically cautious stance. The concentration of positions could lead to more violent reactions around key levels. Market participants appear to be watching closely for any signs of trend continuation or exhaustion.
Singapore-based trading firm QCP Capital released a new report highlighting how President Trump is easing political pressure on key economic issues. Bitcoin posted impressive gains, reaching a high of $94,500.
According to QCP Capital's report, Trump has temporarily dismissed criticism of Federal Reserve Chairman Jerome Powell and softened rhetoric towards China. Despite continuing to show frustration with the Fed's slow pace in cutting interest rates, the president assured investors on Wednesday morning that Powell's tenure is not at risk. In a significant change of course, Trump also acknowledged that the 145% tariff on Chinese goods is "very high"and promised that "it will be reduced significantly".
Markets reacted positively to this lull. Bitcoin extended its rally for the fifth consecutive day, as overall risk sentiment stabilised.
Historical High
When Bitcoin rebounded to $94,000, it became for a short time the fifth largest asset in the world by market capitalisation, surpassing Alphabet (Google) for the first time. Although the price has since dropped to $93,000, placing seventh, the symbolic milestone reflects the continued maturation of the asset.
This momentum is fuelled by increasing institutional participation, with new players such as Twenty One Capital reinforcing Bitcoin's position among the world's most valuable assets.
Attention to Position
With Bitcoin steadily above $90,000, sentiment is becoming increasingly bullish. According to QCP Capital, trade flows are dominated by call options at $95,000, with expiry dates between late April and May - a sign of tactical interest in further gains.
The call option strategy allows traders to obtain the right (but not the obligation) to buy Bitcoin at a predetermined price of $95,000. If the market price exceeds that level, investors can make significant profits by paying only a small premium for the option. This is an attractive strategy for those who anticipate further rises but want to limit their risks.
That said, with macroeconomic risks temporarily mitigated and trade tensions cooling, Bitcoin could consolidate in a narrow range between $90,000 and $94.500, waiting for a catalyst to push it to the coveted $100,000 mark.
Considering the rapidity of the recent rally, QCP Capital is maintaining a tactically cautious stance. The concentration of positions could lead to more violent reactions around key levels. Market participants appear to be watching closely for any signs of trend continuation or exhaustion.
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