PANews reported on July 14 that Singapore's cryptocurrency investment firm QCP Capital stated that Bitcoin's rally is strong, with prices surging past $122,000, driven by technical breakthroughs and a significant increase in institutional demand. The cryptocurrency fear and greed index rose from 40 to 70 in three weeks, indicating a shift in market sentiment from 'fear' to 'greed'. Institutional investment enthusiasm is high, with over $2 billion in net inflows into spot Bitcoin ETFs last week, showing an increase in institutional participation. In the derivatives market, leveraged long positions have surged, with perpetual contract funding rates nearing 30%, and open interest surpassing $43 billion, marking the first time since January this year.
The Bitcoin price has entered unknown territory, making short-term tops difficult to gauge. The options market provides clues, with implied volatility not spiking alongside spot price increases. Although front-end volatility has risen, it remains below last year's average, reflecting a maturing market, as is the case with the Ethereum market. Traders may prefer using perpetual contracts to express their views due to high options costs. The one-month risk reversal indicator remains stable, while the September and December indicators show that call options are supported by buying pressure, with investors hedging short-term risks while maintaining long-term bullishness. Given the high funding rates and the lessons from February's liquidations, investors remain cautious. QCP maintains a structurally bullish outlook on Bitcoin, but is more inclined to enter cautiously at current price levels and wait for a pullback to position.
