Loader
logologo
Alpha Zone
Analysts
My Reading List
Log in
DeFiGaming & MetaverseInfrastructureMarketsNFTs
QCP Asia Colour
QCP Capital
main

BTC prices dropped to $55.2K during early US trading on Monday after the German Police moved $900 million worth of BTC to exchanges. The market was initially spooked but quickly rebounded.

We are seeing glimmers of bullishness due to:

  1. $200 million worth of BTC was later returned to the German Police from the exchanges, indicating these assets didn’t hit the market.
  2. Strong demand shown by quick dip-buying, supported by $295 million ETF inflows on July 8, the highest in 21 days.
  3. Despite thin liquidity, BTC and ETH have made higher lows this week, with dips bought up aggressively.

The market is highly reactive to supply movements, suggesting speculative selling pressure rather than real spot demand. This may indicate a market over-positioning for the downside.

A catalyst is needed. The ETH spot ETF is set to start trading around July 15. Positive reception could boost liquidity and potentially surprise the market with an upward move.

Trade Idea

Recommend deploying into OTM ERKOs, anticipating a breakout with minimal cash outlay and zero downside risk.

BTC Call ERKO (60/70K 27-SEP) Max Payout: $10,000 per BTC (6.1x) if BTC spot price is just below 70k at expiry. Cost: $1,650 per BTC (Spot Ref: 57,600)

ETH Call ERKO (4/5K 27-SEP) Max Payout: $1,000 per ETH (12.5x) if ETH spot price is just below 5k at expiry Cost: $80 per ETH (Spot Ref: 3,090)

You might also like
Article cover
QCP Weekend Brief
Article cover
QCP Asia Colour
Article cover
QCP Asia Colour
Disclosure: The authors of this content and members of Nansen may be participating or invested in some of the protocols or tokens mentioned herein. The foregoing statement acts as a disclosure of potential conflicts of interest and is not a recommendation to purchase or invest in any token or participate in any protocol. Nansen does not recommend any particular course of action in relation to any token or protocol. The content herein is meant purely for educational and informational purposes only and should not be relied upon as financial, investment, legal, tax or any other professional or other advice. None of the content and information herein is presented to induce or to attempt to induce any reader or other person to buy, sell or hold any token or participate in any protocol or enter into, or offer to enter into, any agreement for or with a view to buying or selling any token or participating in any protocol. Statements made herein (including statements of opinion, if any) are wholly generic and not tailored to take into account the personal needs and unique circumstances of any reader or any other person. Readers are strongly urged to exercise caution and have regard to their own personal needs and circumstances before making any decision to buy or sell any token or participate in any protocol. Observations and views expressed herein may be changed by Nansen at any time without notice. Nansen accepts no liability whatsoever for any losses or liabilities arising from the use of or reliance on any of this content.